Gold is marginally lower today after gaining last week on the U.S. inflation data that showed that the cost of living in the U.S. increased by the most in six months. This increased the appeal of gold as an inflation hedge.
Seasonally, the months of November, December and January are positive months for gold and October is seasonally a weak month for gold. November is gold’s strongest month in the last ten years and it has returned 4.93% on average since 2003. Since 1975, gold has returned nearly 1.5% on average in November.
The PGM metals — platinum and palladium — are typically highly correlated assets. However, since February of this year, they have diverged, with palladium pushing toward the highs while platinum has languished.
When Rick Rule pairs lower grades, labor strife and inefficient mines with the relentless demand for platinum and palladium, his result is an investment thesis that could pay off for bullion and equity investors.
The truth, in regards to the world’s mineral resources, is that we in the western developed countries are not in control of supply. There are many serious concerns in regards to global resource extraction that we need to consider.
Gold prices broke to under the pivotal $1,700 mark overnight, and did so despite a slightly weaker US dollar, despite a firmer euro, but alongside almost 1% weaker crude oil values. The decline was partially attributed to an overall slide in commodities.
Platinum is still 20% below pre-credit crisis highs while gold and silver is approximately 80% higher. This deviation from historical means will not last forever.
Platinum has been significantly overlooked and undervalued.
Strikes at South African mines have coincided with the sudden resignation of Aquarius Platinum's CEO. Stuart Murray has not offered any comments on his motives. But it seems clear that the situation in the country's mining sector is escalating.
Wholesale-market prices to buy gold eased $5 in London on Thursday after an overnight rally to $1,760 per ounce. US crude oil rallied back above $90 per barrel. Silver prices held in a tight range above$34.00 per ounce.