Platinum-group metals are much rarer than gold and therefore more prone to supply disruptions, with labor strife in South Africa having led to short-term price spikes on many occasions in recent years. Their major industrial use is in automobile catalytic converters, and with the auto industry having been healthy lately, the white metals have outperformed gold all year. That trend may continue even if the prevailing direction throughout metals is down.
Oil isn’t usually linked to gold, but as a reflection of economic demand, the $4 drop in the price of oil today is consistent with the behavior of precious and industrial metals. The drop may prove good for consumers who have had to pay high gasoline prices lately, but given the reliance on the booming energy industry for economic growth throughout the U.S., lower prices that threaten profits for energy companies could have a net negative impact on the economy.
Don’t forget these markets again
Gold will likely keep getting all the headlines for the foreseeable future. But keep your eye on these forgotten markets. That way, you’ll be able to see if gold’s behavior is an outlier or if the rest of the commodities market is following its lead.
The article 5 Forgotten Markets That Got Crushed in Gold’s Crash originally appeared on Fool.com.
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