PGMs Price Decline Is ‘Overdone,’ But Further Losses Possible

October 28, 2014

Toronto (Oct 28)  Platinum group metals fell sharply in the third quarter, pressured in part by the weakness, in gold, and BMO Capital Markets said Tuesday the decline was “overdone.”

PGM prices have stabilized somewhat, although “the market remains skittish as stockpiles of both metals appear to be much higher than expected. This uncertainty, and a generally bearish sentiment toward precious metals, could maintain pressure on PGM prices through the first quarter of 2015.”

Palladium should still have greater upside potential than platinum because of the structural deficit; however, BMO said they expect the deficit may fall on the notion that there will be increased palladium recycling. The bank kept its long-term price forecasts of $1,520 an ounce for platinum and $950 for palladium.

Source: KitcoNews

Silver Phoenix Twitter                 Silver Phoenix on Facebook