Amid today’s “increasingly favourable price environment…additional supply [will start] coming on-stream in the next two years,” say specialist analysts Metals Focus – the consultancy behind the gold supply and demand trends’ data published this week by the WGC – “primarily driven by North America.” Back in the first quarter of 2024, “Increases [in the second-hand gold flow] were seen in almost all markets and regions,” says the World Gold Council’s latest report. By BullionVault

For precious metals investors, gold has been the focus. And those physical silver deficits we mentioned? Negated by massive above ground inventories, says Metals Focus. “At end-2023, stocks held in London and exchange registered vaults amounted to nearly 15 months of global supply and there are bullion inventories also held elsewhere,” it says. “This is likely to prevent a physical squeeze from emerging in the short-term, in spite of the robust supply/demand conditions discussed above.” This means investment demand, not physical demand, will likely remain the dominant price driver. By Reuben Adams for Stockhead

Added to continued outflows from gold-backed ETF trust fund products, that saw gold investment selling in North America and Western Europe total more than 84 tonnes between January and March – adding an extra 6.8% to global gold mining and scrap recycling flows on the WGC’s new data, compiled by specialist analysts Metals Focus. By BullionVault

In a recent research report, analysts at Metals Focus noted that historically, Asian investors have sold into rising gold prices; however, this rally has been different as demand for physical bullion has remained strong as prices pushed to record highs above $2,400 an ounce. “Although sharp price gains have weighed on jewellery consumption, bullish price expectations (and a lack of alternative investment options in some countries) have, in fact, helped boost demand for bars and coins and have limited the scale of profit taking in Asia and the Middle East,” the analysts said in a recent report. By Neils Christensen for Kitco News

“The deficit in the silver market helps to provide robust support and a strong floor for the price,” said Philip Newman, managing director at Metals Focus, which produces the annual survey. “The deficit fell by 30 percent last year, but in absolute terms — at 184.3 million ounces — it was still eye-watering. Global supply has been broadly steady at around the 1-billion-ounce mark, while industrial demand did incredibly well with 11 percent growth,” he added. By Giann Liguid for Investing News Network

Gold priced in the UK Pound and the Euro also hit 1-week lows, dipping through £1900 and €2200 respectively. “Given the scale of the rally [in gold prices] since March, a period of price consolidation is hardly surprising,” says specialist consultancy Metals Focus in its latest weekly analysis, noting the precious metal remains strong despite prospects for US interest rates to stay higher for longer. By BullionVault

With demand consistently outpacing supply for the third year in a row, the market faced a structural deficit of 184.3 Moz. The World Silver Survey 2024, released by the Silver Institute, examines key aspects of the 2023 silver market and provides an outlook for this year. It was produced by London-based precious metals consultancy Metals Focus. By Mining Review Africa

“The deficit in the silver market helps to provide robust support and a strong floor for the price,” said Philip Newman, managing director at consultancy Metals Focus, which produced the World Silver Survey for the Silver Institute. “The deficit fell by 30% last year, but in absolute terms – at 184.3 million ounces – it was still eye-watering. Global supply has been broadly steady at around the 1-billion-ounce mark, while industrial demand did incredibly well with 11% growth.” By Polina Devitt, Reuters

On Wednesday, the Silver Institute released its annual World Silver Survey, which was conducted by UK-based research firm Metals Focus. Metals Focus noted that industrial demand continues to dominate the silver market and is expected to hit another record high this year, rising 9% to 710.9 million ounces, propelled by the solar sector as silver demand for Photovoltaic (PV) solar panels rises 20% to 232 million ounces. By Neils Christensen for Kitco News

Analysts see a long tail for PGMs use in traditional internal combustion engines, and a drop in supply as mining becomes less economic has kept prices relatively well supported. But with fellow precious metal gold at all-time highs this year, that’s a disappointing performance. “The PGM sector is facing a shift in which palladium and rhodium will see declining demand with no major alternative demand sector on the forecast horizon,” Wilma Swarts, head of PGMs at consultancy Metals Focus, told Reuters. By Polina Devitt and Ashitha Shivaprasad for Reuters

Young people are skipping “pleasurable consumption” and instead purchasing “asset-style jewelry” such as gold beans for adornment and investments, said Nikos Kavalis, managing director at the London-based consultancy Metals Focus Ltd. However, he cautions that it makes no sense to invest in gold beans — or other gold items — because their price is often 10% to 30% higher than the commodity’s spot price. Investors would be better served by parking money in gold ETFs, he said. By Bloomberg News

Russia’s new silver mine Prognoz, one of two major projects coming online around the world this year, will start selling silver concentrate in the third quarter of 2024, its owner told Reuters on Wednesday. Global silver output from mines is expected to rise by 4% this year to 843 million troy ounces, the highest level in six years, partly due to the commissioning of Prognoz, according to the Silver Institute and consultancy Metals Focus. By Anastasia Lyrchikova and Polina Devitt for Reuters

Jewellery demand is forecasted to grow by 6%, led by India, according to the Silver Institute and Metals Focus, a precious metals research consultancy based in London. India is expected to drive most of the increase, benefiting from a positive economic outlook and consumers becoming accustomed to higher silver prices in rupees. In contrast, soft consumer sentiment in the US and Europe may dampen jewellery consumption, but retailers restocking is likely to offset the impact. By GJEPC

As in the past, gold remains a safe haven asset, with investors flocking to it during uncertain times including black swan events such as COVID-19. Metals Focus MD, Philip Newman explains, “ Towards the end of 2022, there was a high demand for small bars and coins in Europe and the US.” However, he points out that institutional investors, such as hedge funds, view the situation differently. “Their focus has very much been on how the US Federal Reserve bank will behave in terms of its rate policy. Barring another crisis next year, I believe that this will remain the key driver for 2024.” By Mining Review Africa

The presence of above-ground stocks and investor shorting outweighed physical shortages, according to Metals Focus, which analyses precious metals markets. A reduction in Chinese PGM imports this year and continuing concerns about the rate of China’s growth is set to continue the theme of depressed metal prices in 2024. “Looking ahead to this year, we anticipate a continuation of these dynamics,” it says in a report published this month. By David McKay for Mining Mx

Platinum and palladium are effectively interchangeable in gasoline autocatalysts, which account for 80% of total palladium demand. Consultancy Metals Focus estimates total palladium and platinum demand at 9.7 million ounces and 8.1 million ounces, respectively. “We are already seeing substitution slowing down or in some cases stopping,” said Nikos Kavalis at Metals Focus, adding that the process would eventually reverse. “It won’t be an overnight change, as autocatalyst designs can happen a long time before cars actually come off the production line.” By Brijesh Patel and Polina Devitt for Reuters