ETF Securities remains positive on platinum and palladium

UNITED STATES November 13 2014 11:35 AM

NEW YORK (Scrap Register): Emerging market countries were responsible for nearly 2/3rds of global precious metal demand in 2013, compared to about 1/3 in 2003 and 1/4 in 1993.

While many analysts point to the potential for higher interest rates in the US and the strengthening US dollar as reasons for gold to decline in price, the focus should be on emerging market demand.

In 2011, China exceeded the US as the world’s largest user of silver. Emerging market demand for platinum and palladium has more than doubled in the past decade to about 50% of total demand, up from about 24% in 2003.

ETF Securities remains particularly positive on platinum and palladium as they are among the few industrial commodities in supply demand deficits and with platinum currently almost 14% below its marginal cost of production.