Heraeus Precious Forecast 2020

Update September 2020

  • Gold remains in demand as a safe investment in corona crisis
  • Silver still in the focus of investors
  • Platinum holds its ground despite market surplus
  • Palladium supply less affected by corona
  • Rhodium market characterized by scarcity

Covid-19 has led to fundamental changes in the development of industrial demand and production of precious metals. At the same time, precious metals benefit from a significant demand from investors. Low interest rates, geopolitical tensions and the significantly weaker dollar support buying interest. This has prompted us to adjust our forecast for the rest of the year to the current environment.

According to Heraeus Precious Metals, the world's largest precious metals processor, gold will remain in demand at a high price level. "Macroeconomic and geopolitical conditions should continue to support the gold price for the rest of the year," said André Christl, Managing Director of Heraeus Precious Metals. In the midst of the coronavirus pandemic and the continuing tensions between the US and China, the economic outlook remains uncertain - not least before the upcoming US presidential election.

According to Heraeus experts, silver will also defend its recent upswing. Industrial demand is now showing signs of recovery. At the same time, concerns about the economic consequences of the Corona crisis and the multi-billion-dollar government stimulus packages are encouraging a shift to safe investments.

The platinum price should hold its ground despite a market surplus. However, apart from investment demand, the fundamental outlook remains weak. For palladium, the pandemic affected supply less than demand. Therefore, HPM expects the palladium market to reach equilibrium for the first time since 2009.

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The material contained in this document has no regard to the specific investment objectives, fi nancial situation or particular need of any specifi c recipient or organisation. It is not provided as part of a contractual relationship. It is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment or as advice on the merits of making any investment.

This report has been compiled using information obtained from sources that Heraeus and SFA (Oxford) Ltd (“SFA”) believe to be reliable but which they have not independently verified. Further, the analysis and opinions set out in this document, including any forward-looking statements, constitute a judgment as of the date of the document and are subject to change without notice.

There is no assurance that any forward-looking statements will materialize. Therefore, neither SFA nor Heraeus warrants the accuracy and completeness of the data and analysis contained in this document.

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