Precious Metals Report 2024/11 - Update
In our first issue of the Precious Metals Report 2024, we reported in April 2024 that gold had reached a new record high of US$ 2,200 per ounce, which was completely unthinkable a year ago. A good six months later, the gold price is almost 20% higher again at more than US$ 2,600 per ounce and there seems to be no end in sight. This is due to a special combination of factors that has developed in recent years and is now finally helping gold to its almost unstoppable triumph.
We can only repeat ourselves when it comes to silver, as only one thing has changed since the last edition of this report: The supply deficit has once again widened massively! Several physical properties make silver a sought-after conductor material, which is why demand from the (emerging) boom sectors of electromobility, photovoltaics and 5G transmission has recently exploded, catapulting demand to an all-time high. At the same time, silver production has been declining recently, which is mainly due to the fact that silver is mainly extracted as a by-product from base metal mines and these metals have been weakening in terms of price until recently, which is why many mines have reported declining production figures. This has led to ever-increasing supply deficits in recent years, which reached record levels in 2022 and 2023 and will very likely be even higher in 2024.
In the case of platinum, the ground is already being prepared for a new surge in demand and a simultaneous decline in supply. The recent noticeable slowdown in demand for e-vehicles, an additional decline in recycling due to fewer end-of-life vehicle returns and a shortage of Russian platinum on the global market have kept the price of platinum stable. As the latest developments in the platinum sector show, platinum mining is simply too expensive at the current price level, meaning that a shortage of supply is inevitable. In the medium term, this will enable the sector to reach higher price levels again.
Palladium has recently suffered a similar fate to platinum - the price has fallen, collapsing from a record level. A balanced supply/demand situation is to be expected in the coming years, which could quickly lead to a large-scale supply deficit, at least in Western countries, if conflicts with Russia continue.
