2019 witnessed a dramatic increase in Rhodium, Palladium, and Platinum, with substantial increases in Gold, and Silver.
1. Rhodium is up an astonishing 145% y/y in 2019
2. Palladium +53% y/y
3. Platinum +25%
4. Gold is +19% in 2019
5. Silver +17%
6/7/8. The PGM Minor Metals: Iridium, Ruthenium, and Osmium
Precious Metals Market Fundamentals
Precious Metals global supply is dominated by over 1 billion Toz of mined and recycle silver. This is followed by 150 million Toz of mined and recycled gold. Finally, the 6 PGM metals account for less than 22 million Toz of mined and recycle precious metals supply.
Attached 2019 ending values to these supply shows the collective 2019 precious metals market is a $303 billion USD total market. Of course, Gold financially dwarfs all of the other 5 precious metals in terms of total available market.
Precious Metals Market Highlights
Now let us look at the major precious metals market drivers: Jewelry, Investment/Bullion, and Industrial Demand.
Jewelry is forecast to be relatively flat in 2020, and Industrial demands of the PGM’s and Silver is very bankable. That leaves questions about the Investment Demand intensity of Gold, Silver and Platinum in question as to future performance.
A look at an overview of the Precious Metals basket describes some of the key supply and demand outlook forces
Emission Control/Auto Catalyst PGM Demand
Palladium, Rhodium, and Platinum demand driven by one industrial application: Vehicle emission control systems, and catalytic converter PGM catalyst materials. A pareto of the top industrial applications of precious metals highlights this key Auto Catalyst demand.
Deeper Diver Resources on the Auto Catalyst Market
Looking ahead to 2020 and the next decade:
Can we expect another explosive year in precious metals prices? What does history teach us? Let’s review a few charts covering the past decade of price movement.
Gold – The fate of future gold prices hinges on the macro-economic issues. Should commodity markets enter into a recession, or geopolitical strife including the continuing trade dispute with USA and China continue, then gold is very likely to continue its climb.
Plotting the last 10-years of gold fix, indexing each year to lead January fix to year ending December fix. As can be seen in the charts below, each of the metals past decade historical data would indicate:
Constructing a forecast for 2020
Precious Metals Dec 31, 2020 Forecast