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in Greater China, rising to 8% in 2014, and average US $823/oz. "Platinum and palladium markets show growth of 1.9% across North America in the tightest supply and demand among pre- 2014. cious metals and probably will throughout South Africa, Russia and Zimbabwe next year as well," said Daniel Briesemann, account for 92% of platinum production an analyst at Commerzbank AG in and 84% of palladium output. Primary Frankfurt and the most accurate palladium platinum supply is anticipated to rise to 5.7 forecaster tracked by Bloomberg over the million ounces next year, while palladium past two years. "Industrial demand should will increase to 6.5 million ounces in 2014. In spite of the on-going, strong growth stay high." "Platinum and palladium are the quint- in demand, production of both platinum essential industrial precious metals," and palladium peaked in 2006 and has said Bart Melek, the head of commodity been declining ever since. Primary platistrategy at TD Securities Inc. in Toronto. num production has dropped at an average "Industrial demand is key in driving rate of 2.6% per year while palladium prices." Melek believes that the big incre- production has been declining at a rate of mental moves will come from the demand 3.3% per year. On top of that, about 70% side. "If we get a firmer economic recovery of platinum producers' all-in costs exceed continuing, then this will bode well for the current average platinum price. industrial precious metals." The developed world has been steadily SILVER increasing emission standards, leading to CPI Financial recently commented on the increased PGM demand. China, now the duality of silver market, at times closely world's largest market for automobiles, has shadowing developments in the gold marmade it a priority to improve air quality. ket and at other times taking cues more ResourceWorld0104_Layout 1 13-12-03 8:05 AM Page 1 Barclays expects growth of 7% in auto sales from the industrial world. This trend Vancouver Resource Investment Conference Booth #1019 TSX:FT | OTC QX: FTMDF Emerging Canadian Producer of Metallurgical Coal, Gold and Specialty Metals Join our email list • Two development projects in permitting – Both have Positive Feasibility Studies • Arctos Anthracite Project, BC: One of the world's premier metallurgical coal developments • NICO, Northwest Territories: Significant gold, cobalt and ~15% of the world's bismuth reserves • Deloitte engaged to secure strategic partners – POSCO & China CAMC Engineering already invested fortuneminerals.com | 519.858.8188 is forecast to continue into 2014, as an improving physical demand environment is faced with the potential for an unwinding of US government quantitative easing and a stronger US dollar. BMO Research said it expects silver prices to decline through 2014, assuming the US recovery is well under way. BMO believes silver will underperform gold due to an uncertain industrial demand outlook in the US in the near term, as well as expectations for significant supply growth in 2014 and 2016. GOLD Gold analysts are taking bearish stances on gold futures since the US Federal Reserve signaled it may ease its stimulus program. This eventual slowing of stimulus coupled with a strengthening economy will cut demand for gold as an investment haven. The yellow metal is currently 34% below the record set in 2011 on course for its first annual loss in 13 years. Gold slumped 26% this year to US $1,240/oz on the Comex in New York (as of Nov 25th) heading for its biggest annual loss since 1981. According to Bloomberg, bullion will average US $1,175/oz in the third quarter next year based on the median of estimates from the 10 most accurate precious metals analysts it has tracked. Societe Generale SA, which correctly predicted gold's slump this year, anticipates gold will average US $1,125/oz next year, the lowest price since 2009. Credit Suisse Group AG forecasts an average gold price of US $1,180/oz for next year and US $1,200/oz for 2015. Bank of America Corp. is slightly more bullish, pegging its estimate at US $1,294/oz for 2014 and $1,356 for the following year. Investors sold 768.9 tonnes of the precious metal from gold-backed exchangetraded products this year through November 20th, erasing US $67.1 billion of value from the funds. According to Bloomberg, this year's sales almost match the total purchases made in the previous three years. Continued on page 12 10 www.resourceworld.com RW December 2013.indd 10 DECEMBER/JANUARY 2014 12/11/2013 6:11 PM