Metals Rise as Europe Resolution Nears

Brittney Barrett |

The same cannot be said of silver which is on a steeper ascent than it’s yellow counterpart. Silver has been battered this year, disparately trailing gold levels but investors appear to be regaining enthusiasm for the metal. Silver added 2.5 percent today and miner Silver Wheaton Corp.(SLW) was among the biggest gainers among all miners. For the month, the company is down close to 17 percent but an 11 percent improvement over the past 5 sessions has put them on the right track.

Platinum prices also ascended in recent trading, breaking a pattern that has sent contracts over 12 percent lower year-to-date. Platinum, like silver, has been the victim of a shoddy economic outlook and weak demand. The metals weakness throughout the year has left it extremely well priced, especially against the over inflated gold, meaning investors could be reconsidering an investment helping to drive up prices in the near future. Miners concentrated in platinum, like Stillwater Mining Company (SWC) are regaining strength, but the company remains down 46 percent for the most recent three month period.

At last check, the December contract for gold GC1Z was up $22 at $1,683 an ounce on the Comex division of the New York Mercantile Exchange. January platinum PL2F traded at $1,554.40 an ounce, up $35.60.

With the economic outlook and demand prospects still grim for platinum in the short term, platinum buyers are “adopting a wait-and-see approach before jumping into the platinum market,” said Norman. But “platinum supply remains tight relative to gold, with platinum annual supply amounting to only about 8% of total gold production” and above-ground platinum would last for about 1 year. (See story on gold-to-platinum ratio here.)

He said the metal is also among the 5 commodities least vulnerable to recession, according to Barclays analysts who recently ranked commodities by apparent vulnerability to global recession, based on such factors as recent price changes and leverage to emerging market demand. If prices can successfully rebound from the $1,500-$1,550 range, “industrial users such as auto makers and jewelry producers should emerge as buyers,” he said.

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
L:CA Loblaw Companies Limited 69.39 -0.18 -0.26 654,314
SWC Stillwater Mining Company ($0.01 Par Value) 15.15 -0.02 -0.13 1,622,894
GG Goldcorp Inc. 13.49 -0.07 -0.52 8,772,100
ABX Barrick Gold Corporation 15.71 0.05 0.32 22,994,176
SLW Silver Wheaton Corp (Canada) 18.85 0.16 0.86 4,835,721

Comments

Emerging Growth

Altair Resources Inc.

Altair Resources Inc, formerly Altair Gold Inc acquires, explores and develops mineral properties in Canada. The Company is in the process of exploring its mineral properties.

Private Markets

Santo Diablo Mezcal

Santo Diablo Mezcal has been created to capitalize on a boom sector of the beverage market currently full of many small unmemorable products by producing one sexy, household, easily recognizable…

Wealthfront

Wealthfront is an automated investment service that serves as an alternative to traditional financial advisory services. The company manages a diversified, continually rebalanced portfolio of index funds on their clients’…