Gold prices forecast

British experts Corporation Johnson Matthey (JM), which has been producing and selling precious metals, projected on the world market in 2011, the excess supply of 6.1 tons of platinum, which will continue in 2012, reported by the “gold-Herald.”

Worldwide supply of platinum for the whole of 2011 will increase by 6% to 198.9 m. The main growth will come from North America and Zimbabwe. The level of production of platinum in South Africa had a negative impact illegal strikes, low productivity and more frequent stops production at a number of mines for safety reasons. In 2012, it is also expected to increase the supply and utilization of platinum metal from secondary sources.

At a constant level of output of platinum in Russia in the amount of 25.7 tons, increased supply will be the highest in North America – an increase of 80% to 11.2 tonnes.

Recycling of platinum will rise by 3% to 58.5 m. In the processing of additional amounts of catalysts are sent from the end of life vehicles, helped by the development of infrastructure to collect scrap price increase MPG. In Europe, the amount of recycling of platinum will rise due to increase in the proportion of diesel catalysts received for processing. In Japan, growth is projected recycling old jewelry in China, reduced production and delivery to the processing of products from retail will reduce waste, so the overall amount of recycling of platinum jewelry will fall.

In 2011, the expected increase in global vehicle production. World Gross demand for platinum in 2011 increased by 2.2% to 251.3 tonnes (8.08 million ounces) compared with 2010, reaching its highest level in four years.

Demand for platinum for automobile catalysts in the current year is expected to 98.3 tons – an increase of 3% compared with 2010 demand for industrial use will increase to a record level of 61 tons.

Purchases of platinum jewelry sector also increase slightly – by 2% to 76.7 tonnes.Investment demand will decrease and will be 5 tons lower than in 2010 – in the amount of 15.4 tons. On the Japanese market bullion in the current year is expected to increase investment, since the purchase during the downward movement in prices exceeded the sales volumes during the period of rising prices. Exchange traded funds (ETF) will purchase 12 tons of new metal at relatively low levels of implementation, even in periods of sharp price declines.

On the demand side, despite the current macro-economic instability, there is a strong boost to growth in demand for automotive catalysts and industrial sectors.

At the enterprises of “Norilsk Nickel” is expected to further decrease the content of the main components in the ore, and in 2012 production of refined metal may be reduced, according to a review of JM