D E C E M B E R / J A N U A R Y 2 0 1 5
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15
and US $16.20 in 2016.
Silver price forecasts have also been
revised down by BMO research "in sympa-
thy" with the gold prices. BMO Research
now expects silver prices to average US
$17.50/oz in 2015 moving up to US $19.50
in 2016.
Platinum and Palladium
According to BMO Research, palladium is
projected to remain strong through 2017
as the supply deficit is expected to persist.
The bank has increased its price forecasts
to reflect an expected deficit market over
years, with the long-term price increased
from US $850/oz to $950/oz.
Palladium continues to be preferred to
platinum due to greater demand leverage to
auto production in the key growth regions
of China and the US, said BMO.
However, Norilsk has proposed pur-
chase of US $2 billion worth of palladium
from Russia's palladium inventories. This
is equivalent to 2.2-2.5 million ounces of
palladium that could potentially enter
the market and have a significant negative
impact.
Platinum prices are also expected to
improve. BMO Research anticipates "a
relatively tight market for platinum" over
the medium term, "though not undersup-
plied liked platinum." Based on continued
weakness in the Rand, platinum prices are
forecast to be range bound in terms of USD.
BMO average platinum price forecasts for
2015 are US $1,413/oz, while the 2016 price
forecast is US $1,425/oz.
coPPeR
The copper market continues to fight
strong headwinds from increased supply,
and a weaker demand growth outlook.
According to Bloomberg Analysts, copper
supply growth looks to drop to 3.2% com-
pound annual growth rate (CAGR) down
from its earlier prediction of 4% CAGR
per year. More than 6 million tons of new
copper supply is anticipated to come on-
stream by 2020.
The surge in mine production late in
2013 combined with the ramp-up of new
mines has seen concentrate stocks swell.
Growth for metal demand in China, the
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