Gold and silver got smashed upon the COMEX opening bell this morning, and the reason isn’t exactly clear. In the same market where tumbling stocks and surging bonds are attributed to a “flight to safety,” it would seem logical that gold and silver would benefit as well. This is likely a temporary blip this morning, as people who missed the last dip to $1,670 an ounce decide to get on board the train on this small dip before the fiscal cliff gets any closer.
Platinum and palladium are strong this morning, which is no surprise after the Bloomberg report this morning on Johnson Matthey’s forecast that we could see shortages in both metals hit a ten-year high due to bloody labor unrest in South African mines and Russia’s reduction in palladium exports.
Estimates in May forecasted a surplus of platinum this year, but Johnson Matthey’s new report projects a 9.9% reduction in supply, and a 11% reduction in palladium.