Total Public Debt Now Eclipses GDP
The Federal Reserve has put pressure on precious-metals markets over the last few months. Although gold has been up since April, any signal that the Fed will reduce its bond-buying program could further weigh on gold and other precious metals. Silver has also been under pressure from central banks and has also felt the heat from falling industrial demand.
On the other hand, platinum and palladium could be poised for resurgence. Rising mining costs as a result of wage increases, regulations, and political risks in South Africa — which accounts for 80 percent of world platinum production and is also the second-largest palladium producer — may cause a fall in production in coming months, which is a bullish sign for spot platinum prices.
Though a pullback by the Federal Reserve (and thus a stronger U.S. dollar) could weigh on all of our metals in the short run, our long-term outlook remains intact.