How a 'multi-year structural deficit' is impacting precious metals

Clive Burstow, manager of the Baring Global Mining fund, explains how a multi-year supply/demand imbalance is creating value opportunities for investors in precious metals

While to a large extent the outlook for the precious metals market continues to be dictated by investment demand, investors cannot overlook the impact of the constrained supply side of the equation. It is a particularly pressing issue as getting the likes of palladium, platinum, gold, and silver out of the ground is proving increasingly difficult. This gap between relatively robust demand for platinum group metals (PGMs) and the ability of producers to meet both physical and investment demand continues to widen. It is the emergence of this structural, long-term deficit that continues ...