Tags: Experts India | China Demand to Boost Copper | Palladium

Experts: India, China Demand to Boost Copper, Palladium

Wednesday, 07 Sep 2011 08:53 AM

Gold may be the trendy buy in the metals markets now due to its role as a safe haven amid currency and stock-market volatility but industrial metals like copper and palladium are arguably have room for growth, experts say. Emerging market economies like India and China need those base metals to develop their economies.

"A lot of the attraction of industrial metals today is emerging market demand," says Joe Foster, gold analyst for the Van Eck Global Hard Assets Fund, which invests in metals and other commodities, according to CNBC.

Like gold, industrial and base metals ease exposure to volatile stock markets on top of their use in developing infrastructure.

"We find metals, particularly palladium, platinum, copper, lead, and tin to be of very good use as diversifiers within our portfolio," says Jonathan Citrin of advisory firm Citrin Group in Birmingham, MI, who allocates 17 percent of client portfolios to metals, CNBC adds.

Gold is up just 6.4 percent in a week and 14 percent in August, having ended July at $1,631.20 an ounce, according to MarketWatch.
Those numbers are fueling more fears that a bubble is swelling in the gold market.

"We could hit $2,000 ... certainly in the next weeks," says Matt Zeman, head trader and strategist at Kingsview Financial in Chicago, according to MarketWatch.

"It is starting to look a little bit bubbly."

Copper is climbing in New York and London markets on hopes that economic growth across the world will be strong enough to boost demand for raw materials.

"The market's attention is refocused back on fundamentals, which for copper are supportive for higher prices," says Gayle Berry, an analyst at Barclays Capital in London, according to Bloomberg.
Chinese demand "is still very strong."

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Gold may be the trendy buy in the metals markets now due to its role as a safe haven amid currency and stock-market volatility but industrial metals like copper and palladium are arguably have room for growth, experts say. Emerging market economies like India and China need...
Experts India,China Demand to Boost Copper,Palladium
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