Global Precious Metals Price Index Crashes to All-Time Low

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Global-Precious-Metals_Chart_November-2014_FNL

Gold, silver, platinum and palladium price drops across the US, Europe and Asia – all tracked by our MetalMiner IndX℠ – have parlayed into the lowest-ever reading of our monthly Global Precious Metals MMI® this month.

The index registered a record-low value of 86 in November, a 2.3% drop from 88 in October.

Compare with last month’s trends – here’s our free October MMI® Report.

Precious Metals Price Index Timeline

January 2012: The Global Precious Metals MMI® is born, starting out at a baseline of 100.

February 2012: The index breaches the original January 2012 baseline of 100 immediately, hitting 112 in February

Feb 2012-June 2013: Keeps riding high, in the 100s throughout this period, until June 2013, when it dipped below the baseline for the first time to 98; not coincidentally, the price of gold collapsed in the summer of 2013.

June 2013-present: The index has remained sub-100 and headed steadily downhill ever since, hitting 86 this month.

Price Trend Analysis, Outlook

My colleague Jeff Yoders has been tracking key precious markets, and my other colleague, MetalMiner’s lead forecasting analyst Raul de Frutos broke down the gold, silver, platinum and palladium markets for us recently. Basically, all 4 of those precious metal groups are in a four-to-five-month downtrend on our IndX℠, and Raul doesn’t see much room for improvement:

On Silver:

  • Recently fell to its lowest level since 2010
  • Continues hitting new lows without showing any sign of strength
  • In October, tried to rally in low volume, which makes us wonder how long this rally will last (probably not too long)
  • Down 14% overall this year

On Gold:

  • Trying its best to hold above $1,200 an ounce
  • However, looks like it’s just a matter of time until gold falls to new lows as silver recently did
  • Gives us even more reason to remain bearish

On Platinum:

  • Down 7% this year
  • Rose 15% in the first half, however, this rise wasn’t sustainable in the face of a rising dollar and a bearish commodities market
  • During the past 2 or so months, prices plummeted and are now at their lowest levels since 2009

On Palladium:

  • Up 8% this year; without a doubt the strongest of the precious metals and still remains near its highest levels
  • As we stated earlier this year, palladium is the only precious metal worth buying
  • The trend is still up, although its potential seems limited if the rest of the precious metals perform badly

Ultimately, as the US Dollar looks to remain strong, we don’t expect huge upticks in precious prices in the near term. (Get the visuals behind this analysis here.)

This Month’s Exact Price Movements

* Get the complete prices every day on the MetalMiner IndX℠

A 10.4% decline for Chinese silver left the price at CNY 3,520 ($573.13) per kilogram. Following a 6.2% decline in price, Chinese platinum bar finished the month at $42.01 per gram. US silver prices dropped by 5.3% this month to $16.07 per ounce. A 5.0% drop over the past month left Chinese gold bullion at $37.38 per gram.

After falling 4.3%, US platinum bar finished the month at $1,238 per ounce. Japanese silver prices fell 3.6% to $5.38 per 10 grams. At $1,169 per ounce, US gold bullion was down 3.3% for the month. Last month, Japanese platinum bar prices dropped by 2.7% to $40.49 per gram. Indian gold bullion fell 2.5% to $429.56 per 10 grams.

The price of Indian silver drifted 2.1% lower to $620.24 per kilogram. Japanese palladium bar fell a slight 1.4% over the past month to $25.26 per gram. Japanese gold bullion closed the month at $38.82 per gram after dropping 0.8%. Chinese palladium bar prices decreased by 0.6% this month, ending at $28.33 per gram.

US palladium bar reached $799.00 per ounce after a 4.0% increase for the month.

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.

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