Johnson Matthey Plc – which operates in environmental technology, precious metals products, and fine chemicals – forecasts the largest platinum and palladium shortages in over a decade this year. Production stoppages as a result of labor strikes in South Africa and falling sales of palladium from Russian stockpiles could combine to create a deficit in the platinum and palladium markets. Johnson Matthey Plc predicts the sales of palladium from Russian stockpiles to drop 68% this year to 250,000 ounces.
After its largest two-day fall since 1983, gold is benefiting from physical demand as bargain buyers take advantage of the recent correction. Besides retail investors, central banks may similarly capitalize on the correction in gold prices.