Goldman: Platinum to Outperform Gold
Source: Kitco, Allen Sykora (9/20/10)
"Auto industry pushes platinum demand against constrained supply."
Within the commodities arena, Goldman says the near- to medium-term fundamentals remain most constructive for crude oil, copper, platinum and corn, with the short-term risk/reward looking best for crude oil. Goldman says it maintains an "overweight" recommendation for commodities.
Goldman says "recovering global automobile demand will likely continue to put upward pressure on auto-catalyst demand and therefore on platinum and palladium prices."
In the case of copper and crude oil, Goldman cites "expectations that supportive policy shifts in China and the United States, on top of already exceptionally high levels of emerging-market commodity demand, will lead to further tightening in commodity fundamentals."