Quick Take: Gold, Platinum Shaken by Foreign Events
NEW YORK ( TheStreet) -- TheStreet's Gregg Greenberg talked with Will Rhind, the managing director of ETF Securities, Wednesday about the impact of foreign events on precious metals.
Gold prices were down yesterday after India's Reserve Bank said it was "discouraging gold buying in the country," Rhind said. Since the sell-off in gold occurred several months ago there has been a large increase in demand for physical gold, particularly gold jewelry.
The yellow metal has significant cultural importance India, where it is widely used in weddings and other events.
With the recent correlation to negative news, Rhind expects gold to get a pop from the U.S. nonfarm payrolls job report on Friday if the data are overwhelmingly bad.Other metals, particularly palladium and platinum, have also suffered from world events. Investors are worried about South Africa, the largest producer of platinum and second-largest producer of palladium, due to its weakening economy and the multiple strikes with the mining companies there. However, Rhind said, the Physical Platinum ETF (PPLT) has seen a large inflow, suggesting some investors may believe this to be a buying opportunity. "I think that's partly due to concerns over supply in South Africa," he said. -- Written by Bret Kenwell in Petoskey, Mich. Follow @traderboy23
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