Inside Citi’s 2013 Precious Metals Outlook

Platinum Ready to Run

The other white metal averaged $1,556/oz this year, but that number is expected to climb fast. Citi is forecasting for platinum to jump to $1,675 in 2013 and then to $1,775 for 2014. All in all, that would mark a gain of 14% in two years if everything falls Citi’s way. Note that this means that the bank is predicting for platinum to overtake gold in price in 2014. Though platinum has been volatile because of the ongoing mining strikes in South Africa, “Citi projects a balanced market for platinum between 2012 – 2014 and a deficit from 2015 on.”

Palladium to Outshine The Rest

Palladium is a black sheep of sorts, as it very rarely gets the same attention that its three counterparts do. But for those who do pay attention to this metal, things seem to be quite rosy for the next few years. Citi thinks that this year’s average price of $638/oz will be shattered in the next two years, with prices shooting up to $744 in 2013 and $925 the year after. That would mark a 44% increase in just two years for this precious commodity. With auto markets recovering, Citi predicts that growing demand and tight supplies will lead to a deficit in the palladium market, pushing up prices.

This article was originally written by Jared Cummans, and posted on CommodityHQ.