Precious Metals Finish the Year at Multi-Year Lows

2015 was not a good year for gold and silver bullion.

Bullion.Directory precious metals guest post 31 December, 2015
By Nick Adamo
President at Bullion Shark LLC

Silver finished the year at $13.83 an ounce, while gold finished at $1,060.50. However, there might be a silver lining in this most recent lackluster year.

Every silver and gold investor wants the spot market prices to rise in order to generate significant returns on their investments.However, low prices for the entire year of 2015 have given silver and gold stackers alike the opportunity to reduce their cost average per ounce by adding more at such low prices.

Low prices have actually made some investors very content. The lower prices of gold and silver have brought new investors into the market, who have never bought these metals before.

Additionally, many investors believe that the longer that silver and gold prices stay at these levels, the bigger upside potential will be when the market turns around.

Logically thinking, with prices of silver and gold below production cost, many miners will continue to become insolvent, mines will close, and production will continue to decline. This will only decrease the supply of silver and gold, which in turn should place upward price pressure on the metals.

2015 also did not treat platinum and palladium well. Both of the metals were down significantly.

Platinum finished the year at $890 and palladium finished at $560. For the first time in many years, platinum traded at prices substantially below the price of gold for an extended period of time. As with Gold and Silver, many platinum investors are frustrated because high demand for the metal is not corresponding to higher prices.

In fact, there was a Platinum deficit of 320,000 ounces in quarter 3 and 20,000 oz’s in quarter 2.

Copper also finished the year of 2015 at multi-year lows.

Copper futures finished the year around $2.13, which is far from the $4 plus prices that were seen in 2011. Typically, copper is a great gauge of new home construction and thus a major indicator of economic activity. Copper prices at these levels suggest that the housing market is weakening and so could the overall economy.

2015 proved to be a weak year in terms of the prices of these precious metals, but fundamentals are strong, which may cause 2016 to be a big year for the precious metals.

So now may be the time to get into these shiny metals.

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