The monthly Global Precious Metals MMI® registered a value of 108 in March, a decrease of 4.4 percent from 113 in February.
This was the largest fall for the our precious metals index since the October-November decline, mainly on the back of global silver prices. In fact, most of the price points in the complex tumbled over the last month. However, the index is still holding well above the Jan. 2012 baseline of 100.
MetalMiner’s Stuart Burns recently analyzed the gold market, reporting on the ETF outflows. “Since the start of January, gold ETFs have dumped 140 metric tons of gold. February saw the largest monthly outflow of gold from ETFs on record, and Comex has chalked up the highest level of short positions in more than a decade,” he wrote.
According to Stuart’s analysis, the cost of production for gold has skyrocketed over the years, ore grades are declining and new viable mines are few and far between. The main takeaway, however, is to keep an eye on global GDP growth as a key indicator: “If GDP growth does not live up to expectations this year and next, gold at sub-$1,500 per ounce may look like it has some legs after all.”
Meanwhile, ETF Securities weighed in on the PGM market in a report earlier this week: “A seemingly more stable South African supply picture weighed on white metal prices, overshadowing positive auto sector developments,” according to the report. “The stronger USD also helped depress PGM prices.”
Looking forward, however, strengthening automotive markets in the US and worldwide should contribute to solid PGM fundamentals.
Primary Price Drivers of the Precious Metals Index
US silver prices fell 9.4 percent to $28.51 per ounce. A 8.1 percent decline for Japanese silver left the price at JPY 850.00 ($9.08) per 10 grams. At $966.73 per kilogram, the price of Indian silver finished the month 7.4 percent lower. After falling 7.1 percent, Chinese silver finished the month at $944.81 per kilogram. Following a 6.1 percent decline in price, US platinum bar finished the month at $1,581 per ounce. US gold bullion prices dropped by 5.1 percent this month to $1,580 per ounce. Following a 4.5 percent decline in price, Chinese platinum bar finished the month at $54.63 per gram. A 4.4 percent drop over the past month left Japanese platinum bar at $50.40 per gram. After falling 4.3 percent, Japanese gold bullion finished the month at $50.35 per gram. At $51.50 per gram, Chinese gold bullion was down 4.2 percent for the month. At $535.73 per 10 grams, the price of Indian gold bullion fell 1.9 percent. The value of Chinese palladium bar weakened by 1.7 percent this month, settling at $28.44 per gram.
At $25.06 per gram, the price of Japanese palladium bar finished the month 5.7 percent higher.
The Global Precious Metals MMI® collects and weights 14 global precious metal price points to provide a unique view into precious metal price trends over a 30-day period. For more information on the Global Precious Metals MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.