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NEW in the last 5 minutes www.usagold.com --LIVE NEWS--
NZ dollar up as Aussie employment data disappoints	21:52 TVNZ - Business
Rupee falls by 5 paise	21:51 Rediff.com - Business
5 to 10 minutes old www.usagold.com --LIVE NEWS--
NZ dollar rises as aussie employment data disappoints	21:49 Scoop - Business
Federal Reserve's Beige Book finds U.S. economy mending; auto, home sales said to fuel expansion	21:48 The Plain Dealer, Ohio - Business
MLK's Economic Justice Views Often Misunderstood	21:46 The Huffington Post - Black Voices
10 to 15 minutes old www.usagold.com --LIVE NEWS--
Japan's Nikkei erases early gains after the yen strengthens	21:43 Reuters - Economy
Forex Flash: AUD/USD, risk skewed towards 55-day MA at 1.0454 - OCBC	21:41 FXstreet - Forex News
Forex: Top-heavy AUD/JPY looking South	21:41 FXstreet - Forex News
Rupee falls by 5 paise against US dollar in early trade	21:41 The Financial Express - Banking & Finance
15 to 30 minutes old www.usagold.com --LIVE NEWS--
Rupee falls by 5 paise against dollar	21:39 The Times of India
Rupee opens marginally lower at 54.73	21:36 The Hindu Business Line - Markets
Colorado, Boulder poised for 'robust' 2013, economic development officials say	21:35 Boulder Daily Camera, Colorado - Business
Rupee down 5 paise in early trade	21:35 The Hindu - Business
Economist Richard Wobbekind: Boulder County on pace for further economic growth	21:33 Boulder Daily Camera, Colorado
Bond yields higher; RBI chief reiterates inflation view	21:31 The Economic Times - Bonds
Rupee falls by 5 paise at 54.74/dollar	21:26 The Business Standard - Banking & Finance
Rupee edges down on dollar demand from oil firms	21:25 The Economic Times - Markets
30 minutes to 1 hour old www.usagold.com --LIVE NEWS--
Forex Flash: China’s recovery is taking shape - Standard Chartered	21:21 FXstreet - Forex News
Asia gold flat platinum snaps 7-day rally	21:16 The Business Standard
Gold flat; platinum snaps seven-day rally	21:13 Reuters - Business
Copper Smelters in China, Japan Secure 10% Increase in Fees	21:09 Bloomberg - China
A Strong Euro Starts to Worry Europe	21:05 Business Week - Daily Briefing
Treasury caps executive wages at nonprofits	21:01 Ha'aretz - Business
1 to 2 hours old www.usagold.com --LIVE NEWS--
Economy Ended the Year on an Upbeat Note	20:54 The New York Times - Technology
Copper Rises First Time in Five Days on U.S., China Data	20:53 Bloomberg - Markets - Commodities
Economy Ended the Year With Factory Output Up and Inflation Low	20:51 The New York Times - Technology
Gold bulls expect boost from US downgrade	20:49 FT.com
Investors switch from dollar to local debt	20:49 FT.com
Copper and gold pointer	20:49 FT.com
Currency havens rise in cautious trade	20:49 FT.com
N Brown to open more high street stores	20:49 FT.com
Advertisers turn silver into gold	20:49 FT.com
US economy withstands fiscal cliff concerns	20:49 FT.com
Bundesbank weighs bullion against public pressure	20:49 FT.com
Recession erodes Monti’s prospects	20:49 FT.com
Rupee opens at 54.71 per dollar	20:48 MoneyControl.com
Forex Flash: RBA will find it hard to resist further cuts - NAB	20:41 FXstreet - Forex News
Forex: AUD/USD dip eyes 1.0500, threatening to continue	20:41 FXstreet - Forex News
Asian stock markets up as Federal Reserve survey shows US economy improved in 2012	20:40 The Washington Post
Tiger Resources moves towards construction of Kipoi copper plant	20:37 Proactiveinvestors - Australia
Gold may trade in ranges; grains, vegoils may rally	20:36 The Hindu Business Line - Markets
AOFM sells $1b of Treasury bonds	20:33 Business Spectator
Forex: USD/JPY flipping to the downside; 88.30 giving support	20:31 FXstreet - Forex News
Asia stocks rise on signs of improving US economy	20:30 San Francisco Chronicle - Business
Economy poised to grow 6.8% in 2013- World Bank	20:28 Sri Lanka Daily Mirror
Rupee may trade between 54.50-54.85/USD: Mohan Shenoi	20:28 MoneyControl.com
Copper to Swing to First Surplus Since 2009, Pan Pacific Says	20:26 Bloomberg - Regions
Euro slips on Juncker remarks, Fed report	20:23 Business Spectator
Property risk reigniting as China economy turns corner	20:10 South China Morning Post - Money
Ausgold starts new drilling program at Katanning Gold project	20:06 Proactiveinvestors - Australia

White Metals Perk Up

by Peter A. Grant

Jan 16, AM
(from USAGOLD.com) --

While gold remains confined to a narrow range — up a negligible 0.2% year to date — the white metals are heating up. Platinum is leading the complex higher in the early weeks of the new year, regaining its premium to gold for the first time in nearly a year. Platinum is up about 9% so far in 2013, followed by silver at +4% and palladium at +2.4%.

With platinum leading the charge, let's focus on that market today:

The majority of demand for platinum comes from the automobile industry. U.S. auto sales rose an impressive 13% in 2012 as pent-up demand was unleashed by a rise in consumer confidence and improving credit conditions.

The National Association of Automobile Dealers (NADA) expects that trend to continue in 2013, projecting sales of 15.4 million new cars this year. That would be a rise of 6.2% over the 14.5 million units sold in 2012. Forecasts from Edmunds and Polk are in that neighborhood as well. Scotiabank analysts are also optimistic, projecting that continued strong demand from emerging markets will lead to a fourth year of record global car sale volumes.

However, all is not rosy on the demand side. The Wall Street Journal reported today that EU car sales fell 8.2% in 2012 to just over 12 million units. That's down about 25% from the peak of 16 million in 2007. Analyst are worried that even when Europe comes out of recession, demographic trends, driving patterns and the relatively young age of Europe's passenger car fleet do not bode well for a return to the robust demand of the mid-aughts.

An aging population is also weighing on Japanese car demand, which saw a fourth consecutive monthly decline in December. While overall sales in 2012 rose an impressive 26%, it was the first increase in two years, and was largely driven by government subsidies. Those subsidies have since ended.

The Wall Street Journal also reported today that Russian car demand is expected to moderate significantly this year. Demand was up 11% in 2012, but the Association of European Businesses in Russia sees a much more tepid 0.5% increase in 2013.

Auto demand in China grew a rather anemic 4.3% last year, due to a sluggish economy, rising geopolitical tensions with Japan and efforts by several major cities to curb traffic congestion and smog. While the China Association of Automobile Manufacturers (CAAM) expects a rebound in demand to +7% this year, it is largely contingent on an economic recovery. With Europe already in recession and fiscal issues weighing on the U.S. economy, the recovery the CAAM is betting on may prove more illusive than they think.

The second biggest component of platinum demand is jewelry, accounting for nearly a third of overall demand. In the ten-months that platinum traded below the price of gold, there was a corresponding increase in demand for platinum jewelry. However, if platinum is able to sustain the recent rise above the price of gold, we would anticipate that jewelry demand shifts back toward the yellow metal.

On the supply side, as we've discussed in the past, about 80% of global platinum output comes from South Africa. That kind of supply concentration can, and has, proven problematic. Most recently, ongoing labor unrest in South Africa knocked more than 7% off of global platinum production last year.

This week, the largest producer of platinum in the world announced that it was suspending production at several of its mines in South Africa, citing the rapidly rising cost of production. Anglo American Platinum has also said that it will sell its Union mine. There are mounting concerns within the mining industry that other producers will seek to restructure as well.

Anglo American Platinum's restructuring plans are expected to result in 14,000 lay-offs. Not surprisingly, this news did not sit well with the workers, who have threatened to shut down all of Amplat's mines if they proceed. Such action could exacerbate a supply deficit that Johnson Matthey projected at 400,000 ounces back in November. If labor tensions rise once again, that deficit could end up being much worse, driving prices even higher.

Platinum has probed above $1700 this week, levels not seen since October. Like gold, platinum remains confined to a range that was established in 2011; but unlike gold, platinum is now comfortably above the mid-point of that range. If platinum prices continue to gain ground, it should be supportive to the broader metals complex, benefiting gold as well.

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Opinions expressed in commentary on the USAGOLD.com website do not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell any precious metals product, nor should they be viewed in any way as investment advice or advice to buy, sell or hold. USAGOLD, Inc. recommends the purchase of physical precious metals for asset preservation purposes, not speculation. Utilization of these opinions for speculative purposes is neither suggested nor advised. Commentary is strictly for educational purposes, and as such USAGOLD does not warrant or guarantee the accuracy, timeliness or completeness of the information found here.

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