Silver

Ghitac Dana

Conjunctura economiei mondiale / World Economic Studies, 2012

Abstract: In 2011, silver was one of the most profitable investments in commodities. However, strong price volatility, which, after rising 83% in the first four months to the highest level in the last three decades ($ 48.70 per oz in the last days of April) decreased by 34 % by the end of the year, bankrupted many investors. Platinum has become a highly profitable raw material for jewelry sector, which is expected to benefit from strong cheapening of this precious metal relative to gold. If usually platinum is 1.6 times more expensive than gold, in 2011 the situation changed radically. Palladium has become extremely attractive to investors who have not forgotten that the policy pursued by Moscow authorities on the amount of metal exported by the Russian agency for precious metals and stones (Roskomdragmet) can cause excessive fluctuations of quotations on the world market. The most relevant example is provided by the 2000-2001 period, when the sudden withdrawal of Russian deliveries almost tripled the reference price of a troy ounce (from 433 US Dollar in February 2000 at 1.090 US Dollar in January 2001), and the resumption of exports has caused, in just eight months, a correction so strong that troy ounce price dropped to near $ 300.

Keywords: 2011; silver; platinum; palladium; London prices; London Bullion Market Association; Platinum & Palladium Market; world supplies; world demand (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:iem:conjun:y:2012:id:2822000009575111

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