A new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
Precious Metal Analysts Up Price Predictions for 2016
Thomson Reuters recently revised its fourth quarter and full year forecast for gold and silver upward. Here’s why.
New York--Thomson Reuters recently revised its fourth quarter forecast for gold and silver upward following the unexpected outcome of the Brexit vote in the United Kingdom.
Erica Rannestad, a senior analyst for Thomson Reuters GFMS who is based in Chicago, said initially, analysts expected gold prices to drop in the third quarter.
In a forecast released in April, Thomson Reuters had gold averaging $1,200 in the third quarter and $1,250 in the fourth quarter.
However, Rannestad said the market did not anticipate that the U.K. would vote in favor of Brexit and, thereby, did not factor into their forecasts the volatility spurred by a “leave” vote.
All year, people have been buying gold as a “safe haven” asset due to the global economic situation, which has been pushing up the price. The Brexit vote just added to the desire for a safe haven investment, she said.
Kitco data shows that after remaining in the $1,200 to $1,300 range for much of the year, the gold price jumped from $1,262 on June 23, the day of the Brexit vote, to $1,315 the following day.
Though it’s been up and down, the price of gold has remained above $1,300 since then, averaging $1,337 an ounce in the month of July, up from $1,276 in June, according to Kitco.
Thomson Reuters has revised its forecast for the third quarter upward to an average of $1,310 and for the fourth quarter to $1,365, with more volatility expected around the highly emotional U.S. presidential election.
For the year, Thomson Reuters now expects gold to average $1,279 an ounce, up from its earlier forecast of $1,212.
Dave Siminski, of United Precious Metals, is even more bullish on gold for the year. He said he expects the metal to finish the year averaging about $1,375 an ounce.
So, which outcome--a Hillary Clinton victory or a Donald Trump victory--will have a greater impact on gold prices?
Rannestad could not say, as there are arguments for both candidates spurring volatility. “It depends on the level of uncertainty the market sees in the outcome,” she said. “I’m not really sure how the market really perceives the two candidates in terms of who would be bad or good (for gold prices).”
Silver, as is typical, has shadowed gold throughout the year and that is expected to continue.
The metal’s price has risen steadily throughout 2016, starting out the year around $15 an ounce and increasing to more than $20.
Thomson Reuters
Siminski puts silver at $19.74 for the year.
Thomson Reuters’ forecast for platinum remains unchanged from April.
The metal’s predicted to average $1,060 in the fourth quarter and $1,005.06 for the year. It will remain below gold for the foreseeable future.
Demand for platinum in the auto market is steady but not outstanding. Jewelry has been impacted by the slowdown in demand in China, the world’s largest consumer of platinum jewelry. Despite this, mining companies are not cutting back on production as much as they need to, creating an oversupply in the market.
“It’s just this bad supply/demand situation for platinum,” Rannestad said.
The Thomson Reuters forecast for palladium also remains unchanged. The other white metal is expected to average $594.89 an ounce in 2016.
Siminski, again, is slightly more bullish in his forecast. He sees platinum averaging $1,055 for the year and puts palladium at about $695.
The Latest
Last month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
From now through mid-May, GIA will be offering the reports at a 50 percent discount.
With Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
De Beers’ rough diamond sales were down 18 percent year-over-year in its latest round of sales.
Sponsored by the Las Vegas Antique Jewelry & Watch Show
The Patek Philippe expert will serve as personal curator for the brand-focused company.
For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
The 553-square-foot shop is aboard the Carnival Jubilee cruise ship.
NDC filed a complaint against Skydiamond for use of phrases like “diamonds made entirely from the sky.”
John Carter received the AGS’s highest honor Tuesday afternoon at Conclave in Austin, Texas.
LVMH said the company performed well despite an uncertain geopolitical and economic environment.
It’s ultra-feminine and filled with gold, pearls, and soft pastels.
Emily Highet Morgan and Emily Bennett have joined the agency’s team.
Its updated book for mountings is also now available.
She has been with the organization since 2010, most recently serving as its chief officer of PR and industry relations.
Joyce’s Jewelry sued the bank after cybercriminals drained its accounts of nearly $1.6 million through a series of wire transfers.
He is remembered by loved ones for his loyalty, integrity, and kindness.
Hosted by Freeman’s | Hindman, the sale will take place May 7-8.
The auction house said all 24 timepieces offered in its underground sale of rare and avant-garde watches quickly found buyers.
From lab-grown diamonds and AI to the inevitable Taylor Swift mention, here are some of Conclave’s most intriguing educational offerings.
From cybersecurity liability to trade show coverage, insurance experts share tips on how to build the right policy.
The charm is a modern rendition of the evil eye amulet that has been worn for thousands of years.
Ahead of its trade show next month, TJS awarded free registration and accommodations to one jewelry professional and three students.
By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.
Members can still sell lab-grown stones, it said, but only natural gems are allowed on the show floor.
He is remembered for his charisma, passion, integrity, kindness, and wit.