Cpm precious metals advisory 2012 12-06

Precious Metals Advisory
Vol. XXV, No. 12 6 December 2012

Precious Metals Prices May Lack Direction in 2013 Next Scheduled Issue: 10 January 2012
Market Data (Data as of 6 December; changes from 8 November)
There is a tremendous amount of uncertainty in the mar-
ket regarding the economy and the future for precious Nymex/Comex Nearby Active Prices %∆ $∆
metals prices. As a result precious metals investors may Gold 1,701.80 ↓ -1.4% -24.20
wait on the sidelines in December. Many price-moving Silver 33.11 ↑ 2.7% 0.87
factors appear already priced into the market, such as de- Platinum 1,600.70 ↑ 3.8% 58.20
mand expectations for the PGMs and silver, a continua- Palladium 697.05 ↑ 13.5% 82.70
tion of the recession in Western Europe, China’s reduced Rhodium* 1,100.00 ↓ -4.3% -50.00
economic growth trajectory, and sovereign debt handling *Rhodium price is BASF daily settlement price.

in Europe. The approaching U.S. fiscal cliff may have Nymex/Comex Inventories oz ∆ oz
contributed to precious metals price increases in Novem- Gold
ber and may continue to influence prices through the end Eligible 8,800,826 ↑ 119,225 8,681,601
of the year. Registered 2,602,693 ↑ 15,114 2,587,579
T otal 11,403,519 ↑ 134,339 11,269,180
Silver
Precious metals prices typically move higher in the first
Eligible 105,456,690 ↓ -1,141,470 106,598,160
few months of the year due to seasonal factors. Overall, Registered 39,836,930 ↑ 3,428,100 36,408,830
however, prices are expected to average modestly lower T otal 145,293,620 ↑ 2,286,630 143,006,990
in 2013 relative to 2012 levels. Investment demand vol- Platinum - T otal 207,850 ↑ 9,350 198,500
umes for gold and silver are expected to come off further Palladium - T otal 531,100 ↓ -2,000 533,100
next year, which will be the primary driver behind lower Open Interest1 oz ∆ oz
gold and silver prices. Investors are expected to continue Gold
to welcome opportunities to buy at price dips. That ten- February 27,853,400 ↑ 21,074,800 6,778,600
T otal 42,851,800 ↓ -2,187,500 45,039,300
dency to view dips in prices as buying opportunities Silver
could dissipate as the year progresses if sell-offs are not March 426,995,000 ↑ 318,450,000 108,545,000
followed by significant rallies, as investors would begin T otal 704,615,000 ↑ 15,535,000 689,080,000
Platinum
to re-evaluate their longer term bullish sentiments in light January 2,724,400 ↓ -79,200 2,803,600
of weaker prices. The platinum group metals may trade April 344,950 ↑ 154,100 190,850
3,091,700 3,005,250
modestly higher on an annual average basis, with weak T otal ↑ 86,450
Palladium
fabrication demand limiting the upside and constrained March 2,362,200 ↑ 2,074,900 287,300
supply keeping prices well supported. T otal 2,377,100 ↑ 200,700 2,176,400

The primary concern at present in the precious metals 1
Data as of 5 December; changes from 7 November.
markets is when to expect demand growth to strengthen.
In 2010 and 2011, assessing demand was fairly easy – Indicators %∆ $∆
these were recovery years so demand was rising rapidly
DJIA 13,074.0 ↑ 2.1% 263
for cars and electronics containing PGMs and silver and FT World Stock Index 383.6 ↑ 3.0% 11.07
for gold jewelry in the booming Chinese and Indian mar- FT Gold Mines Index 2,777.8 ↓ -11.2% -351.79
kets. In 2012, demand expectations for all the precious CRB Index 297.9 ↑ 2.1% 6.07
metals came off. India’s economy slowed and its govern- T -Bills 0.09% ↑ 5.6% 0.01%
ment raised import taxes on gold in order to reduce its ICE Dollar Index 80.24 ↓ -0.7% -0.55
current account deficit, which weighed on gold jewelry $ / Euro 1.30 ↑ 1.8% $0.023
sales. Europe’s auto market contracted, weighing on ex-
pectations for PGM demand growth. China’s economic Report Contents
Prices in 2013…...…......……….....p.1 Palladium..….………......……...p.27
growth slowed, adding further pressure to demand expec-
Price Targets...………....…………p.3 Rhodium.…….….......……….…p.32
tations. The demand picture in 2012 is expected to spill
Macroeconomic Indicators………p.5 Precious Metals Price Table......p.33
into 2013, will no material changes to prospects for
Gold……...……….……...….…….p.8 Equities and Metrics Table..p.34-35
growth.
Silver………………...…………..p.16
Platinum………………………...p.22

Copyright CPM Group 2012. Not for reproduction or retransmission without written consent of CPM Group. Precious Metals Advisory is published monthly by CPM Group and is distributed via e-mail.
The views expressed within are solely those of CPM Group. Such information has not been verified, nor does CPM make any representation as to its accuracy or completeness. Any statements non-factual
in nature constitute only current opinions, which are subject to change. While every effort has been made to ensure that the accuracy of the material contained in the reports is correct, CPM Group cannot
be held liable for errors or omissions. CPM Group is not soliciting any action based on it. Information contained here should not be relied on as specific investment or market timing advice. At times the
principals and associates of CPM Group may have long or short positions in some of the markets mentioned here.

Precious Metals Advisory 6 December 2012 Page 2

Precious Metals Prices May Lack Direction in 2013 (cont.)
The lack of demand upside in 2013, especially through
the first three quarters, is expected to weigh on precious
metals prices. If the European and U.S. economies begin
to pick up later in the year, industrial demand for pre-
cious metals could help to improve price appreciation
prospects.

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www.cpmgroup.com


Price Targets Key Top of Range 1-Month
Nearby active Comex/Nymex prices. Rhodium prices Projection
Forecast Average
are daily BASF prices. All prices are US$/ounce. Average
2nd & 3rd Month
Bottom of Range Projections

GOLD Near Term Outlook — Gold prices could poten-
tially move in a wide range between $1,620 and
1,850
$1,780 during December. If prices settle below
1,780
1,800
1,800 $1,680, prices could decline toward $1,650 or
even $1,620. A decline in prices or consolidation
1,750 at present low levels could induce bargain buying
1,710 1,715
by various market participants including investors,
1,700
1,721 central banks, and fabricators. Prices could show
1,650 some seasonal strength in the first few months of
the year . Fiscal tightening in the United States is
1,600 expected to reduce economic growth during the
1,620
first few months reducing concerns about infla-
1,550
1,550 tion, which could weigh on gold prices. In such an
1,500 environment gold prices could slip toward $1,550.
J-12 J-12 A-12 S-12 O-12 N-12 D-12 J-13 F-13

SILVER Near Term Outlook — Prices are expected to
move sideways to lower this month, as the level of
38
uncertainty regarding the approaching U.S. fiscal
cliff pushes and pulls at prices. Prices could head
36 35.50
35 higher in January and February of 2013 due to
34
32.79
33.45
index and portfolio rebalancing activity as well as
33 the approach of the Comex March futures delivery
32
period at the end of February. Seasonal demand
for silver is typically stronger in the first few
31
30
months of the year. Prices may stay above $30
30 over the next three months. There is a lot of sup-
28
port at $30, but a move toward this level could
trigger a spike lower, possibly toward $26. Indus-
26
trial demand remains weak, which will weigh on
J-12 J-12 A-12 S-12 O-12 N-12 D-12 J-13 F-13 silver, but investors continue to buy on price dips.
Near Term Outlook — Prices may trend higher
PLATINUM over the next three months. Concerns about supply
1,800 remain high, but strike activity in South Africa’s
1,750 platinum mining sector has abated significantly in
1,700 recent months, which may weigh on prices. Anglo
1,700 1,650 Platinum restarted operations at its mines where
1,650 1,635 illegal strikes were taking place. The company has
1,579
1,600 1,595 lost about 200,000 ounces of potential platinum
1,550 output since the illegal strikes began in Septem-
1,560
1,540 ber. Fresh concerns about power supply in the
1,500
country as well as the potential for new strikes are
1,450 expected to keep prices above $1,540 in the near
1,400 term in even the worse price scenario. The first
1,350 few months of the year are typically a seasonally
strong period for platinum prices, which may keep
1,300
J-12 J-12 A-12 S-12 O-12 N-12 D-12 J-13 F-13
platinum above $1,560 (?) and could help push
prices toward $1,700 in January and February.
Continued


Price Targets Key Top of Range 1-Month
Nearby active Comex/Nymex prices. Rhodium prices Projection
Forecast Average
are daily BASF prices. All prices are US$/ounce. Average
2nd & 3rd Month
Bottom of Range Projections

PALLADIUM Near Term Outlook — Palladium prices could
800 potentially decline as a result of profit taking and
750 the possibility of weaker real demand for the
750 metal in the near to medium term. Prices have
725
risen sharply in recent weeks, which could result
700
in investors booking profits in their positions, es-
650
pecially toward the end of December. There also
638
650 is the possibility that fabrication demand for the
642
600 610
metal will soften during the first half of 2013 due
580
to fiscal tightening in the United States. This
550 could potentially push prices toward $580. Prices
should find support on the downside because of
500 the constant possibility of supply disruptions
from South Africa.
450
J-12 J-12 A-12 S-12 O-12 N-12 D-12 J-13 F-13

RHODIUM
Near Term Outlook — Rhodium prices are ex-
1,400 pected to remain weak over the next three months.
1,350 Rhodium prices are expected to average lower in
1,300 December, at $1,105, from November, when
1,250
prices averaged $1,142, as some of the supply
1,200
constraints supporting prices have eased. Prices
1,200
1,142
1,150
could decline toward $1,000 over the next few
1,150 1,130 months. Some seasonal price strength could help
1,105
1,100 buoy prices in January and February. Demand
1,050 prospects remain bleak, however, which has been
1,050
1,000 weighing heavily on rhodium prices since 2011
1,000
950 and may continue to do so. There is scope for fur-
ther declines in rhodium prices, but investors may
900
J-12 J-12 A-12 S-12 O-12 N-12 D-12 J-13 F-13 M-13 view prices below $1,000 or even $1,100 as a tre-
mendous buying opportunity.


Macroeconomic Indicators
Real Gross Domestic Product Unemployment Rates in Developed Economies
Quarterly Data, Quarter-over-Quarter Percentage Change Monthly Data, through October 2012
Percent Percent
15 12%
Euro zone United States
11%
United Kingdom Japan
10 10%
9%
5 8%
7%
0 6%
5%
USA China
-5 4%
Japan Brazil
3%
India EU
-10 2%
Jun-96 Nov-98 Apr-01 Sep-03 Feb-06 Jul-08 Dec-10 05 06 07 08 09 10 11 12 13

Note: China and India is Quarterly data, with percentage change on a year-over-year basis. Note: U.K. data is through September 2012.

Industrial Production in Developed Economies Industrial Production in Developing Economies
Monthly through October 2012, Year-over-Year Percentage Change Monthly through August 2012, Year-over-Year Percentage Change
40% 30%
Euro zone
30% United States
United Kingdom 20%
20%
Japan
10% 10%
0%

-10% 0%

-20%
-10%
-30%
Brazil China India
-40% -20%
95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12

Note: Euro Zone data is through September 2012. Note: Chinese. data is through July 2012.

Inflation - Developed Countries Inflation -Developing Countries
Monthly CPI, Year-over-Year Percentage Change, through October 2012 Monthly CPI, Year-over-Year Percentage Change, through October 2012
20%
8%
Euro zone United Kingdom 18%
Japan United States 16%
6% Brazil India
14%
China
12%
4%
10%
2% 8%
6%
0% 4%
2%
-2% 0%
-2%
-4% -4%
05 06 07 08 09 10 11 12 05 06 07 08 09 10 11 12


Macroeconomic Indicators (cont)
10-Year Treasury minus Three-Month Treasury 10-Year Nominal Treasury Yield minus 10-Year TIPS Yield
Daily Data, through 4 December 2012 Daily Data, through 4 December 2012
Percent Percent
3.0
6.0

5.0 2.5
4.0
2.0
3.0

2.0 1.5
1.0
1.0
0.0

-1.0 0.5

-2.0
J-82 J-85 J-88 J-91 J-94 J-97 J-00 J-03 J-06 J-09 J-12 0.0
Jan-03 Jan-05 Jan-07 Jan-09 Jan-11

Corporate Baa-rate bond minus Ten-year Treasury CBOE Volatility Index: VIX
Daily Data, through 4 December 2012 Daily Data, through 5 December 2012
Percent Percent
7.0 90

80
6.0
70
5.0
60
4.0 50

3.0 40

30
2.0
20
1.0
10
0.0 0
Jan-86 Jan-90 Jan-94 Jan-98 Jan-02 Jan-06 Jan-10 Jan-04 Apr-05 Jul-06 Oct-07 Jan-09 Apr-10 Jul-11 Oct-12

MZM Money Supply and U.S. Inflation Trade-Weighted Dollar and Gold Prices
Monthly Data, through September 2012 Monthly Data, through November 2012
Percent Percent Index $/Oz
40 11 Trade-Weighted Dollar (LHS) Gold Prices
150 2,000
Correlation: negative 0.11
35 10 1,800
MZM Money Supply (LHS) 140
30 8 1,600
U.S. Inflation (CPI) 130
25 7 1,400
120
20 6 1,200
110
15 4 1,000
10 3 100
800
5 1 90
600
0 0 80 400
-5 -1 70 200
-10 -3 60 -
Nov-81 May-86 Nov-90 May-95 Nov-99 May-04 Nov-08 Jan-73 Oct-78 Jul-84 Apr-90 Jan-96 Oct-01 Jul-07


U.S. Macroeconomic Indicators

Real Personal Income Total U.S. Consumer Debt
Monthly Data, through October 2012 Quarterly End of Period Data, through 1 July 2012

Percent Trillion of Dollars
10.0
16.0
8.0
14.0
6.0
12.0
4.0
10.0
2.0
0.0 8.0

-2.0 6.0

-4.0 4.0

-6.0 2.0
-8.0 0.0
J-60 J-66 J-72 J-78 J-84 J-90 J-96 J-02 J-08 O-49 F-57 J-64 O-71 F-79 J-86 O-93 F-01 J-08

Manufacturers' New Orders: Durable Goods New Orders: Nondefense Capital Goods Excluding Aircrafts
Monthly Data, through October 2012 Monthly Data, through October 2012
Billion of Dollars Billion of Dollars
260 75

240 70

220 65
60
200
55
180
50
160
45
140 40
120 35
100 30
F-92 J-94 O-96 F-99 J-01 O-03 F-06 J-08 O-10 F-92 J-94 O-96 F-99 J-01 O-03 F-06 J-08 O-10

Total Construction Spending Housing Starts
Monthly Data, through October 2012 Monthly Data, through October 2012
Thousands of Units
Billions of Dollars 3000
1400.0
2500
1200.0

1000.0 2000

800.0 1500
600.0
1000
400.0
500
200.0

0.0 0
J-93 J-95 J-97 J-99 J-01 J-03 J-05 J-07 J-09 J-11 J-59 J-64 J-69 J-74 J-79 J-84 J-89 J-94 J-99 J-04 J-09


Gold Outlook
Gold prices may be expected to move between $1,620 As this is being written gold prices have fallen to levels
and $1,780 in December. There have been a couple of just above support at $1,680. If prices decisively break
sharp declines in gold prices in the past two weeks, re- below this level they could slip toward $1,660. Or, they
flecting investor profit taking and nervousness on the part could cascade sharply lower, to $1,650 or even $1,620. If
of long investors. It may be that investor attitudes toward prices hold above $1,680 the sense that a low has been
the state of the world and the outlook for gold are con- made at least on a temporary basis could lead to increased
tinuing to shift, away from fear of major problems toward demand from fabricators, central banks, and investors, all
a view that economic and political problems remain unre- of whom have become extremely sensitive to the price of
solved but are less likely to trigger a major collapse than gold.
investors had expected earlier
India is presently in the midst of its marriage season and
Gold settled at $1,716.50 on 28 November, down $25.80 any weakness in prices should be supportive of fabrica-
from the previous day and prices had declined to tion demand there. The Indian rupee has also been
$1,695.80 on 4 December, down $25.30 from the prior strengthening lately, reducing the cost of imports, which
trading session. Part of the selling on 28 November was could further boost fabrication demand for the metal from
investors who had bought December Comex calls earlier India.
at lower prices, who had exercised these calls at the close
of trading the day before, on options expiration day.
These investors then sold the futures contracts at the Gold Prices: 1 January 2009 to 5 December 2012
opening of trading the next day. Additional selling is be-
$ / Oz
lieved to have been prompted by stop loss selling by 2,000
nervous longs. The sharpness of these declines is likely to
1,900
have made other remaining investors nervous, and kept
1,800
fresh investors on the sidelines, which could drive prices
lower. That said, some physically backed exchange 1,700
traded products (ETPs) saw an increase in their holdings 1,600
on both of those days, with ETP holdings reaching a re- 1,500
cord high 86.5 million ounces on 4 December. Even 1,400
though holdings are at record levels, the net additions to 1,300
holdings have not been particularly large. The strength in 1,200
incremental demand is more important in pushing prices
1,100
higher.
1,000
Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12

Gold Quarterly Average Price Projections to Q3 2014
$ / Ounce
Quarterly
$1,900 $1,900 Year Quarter Change Annual AVG Change
$1,800 $1,800
AVG
$1,700 $1,700
2012 IV $1,726 4.2% $1,675 6.7%
$1,600 $1,600
$1,500 $1,500 2013 I $1,718 -0.4%
$1,400 Actual $1,400
$1,300 $1,300
II $1,667 -3.0%
Projections
$1,200 $1,200 III $1,608 -3.5%
$1,100 $1,100
$1,000 $1,000
IV $1,641 2.0% $1,659 -1.0%
$900 $900 2014 I $1,673 2.0%
$800 $800
$700 $700 II $1,623 -3.0%
2009 2010 2011 2012 2013 2014
III $1,599 -1.5%


Demand from central banks also might be expected to In a scenario where the fiscal cliff is averted, market sen-
rise if gold prices soften. During the first 10 months of timent should improve driving gold prices, along with
2012, central banks had added 10.76 million ounces of other markets, higher at the beginning of 2013. Any com-
gold to their reported holdings, on a net basis. Some of promise reached on the fiscal deficit issue, which would
the strongest net additions by central banks were seen in be positive for market sentiment, would still hurt eco-
months when prices softened or were at relatively low nomic growth, only less than if all of the fiscal tightening
levels. Central banks added on a net basis 2.95 million were to occur. As a result of this the present loose mone-
ounces of gold to their holdings in July, when the price of tary policy is expected to remain in place, to offset eco-
gold was at the lower end of its trading range for the year. nomic weakness arising from any fiscal tightening. This
This was the highest monthly net additions made by cen- might provide slight support to gold prices, but probably
tral banks during 2012. Central banks were also seen add- would not drive prices significantly higher from current
ing 2.3 million ounces of metal to holdings when prices levels.
slipped lower in March 2012.
In the less likely scenario, where no deal is reached on
For a variety of reasons investors remain interested in how to address the U.S. fiscal situation gold prices should
owning gold and should be expected to step in as buyers be expected to decline alongside other assets as investors
when prices soften. There is a lot of uncertainty sur- move into cash. In such a scenario monetary accommoda-
rounding the handling of the current U.S. fiscal deficit tion is likely to be increased significantly to support eco-
situation, which if not addressed would trigger automatic nomic growth, which could be supportive of gold prices.
federal spending cuts and tax increases in January 2013
(the fiscal cliff). We expect that the U.S. government will Prices
patch together a relatively superficial agreement at the
11th hour, with most of the proposed tax increases and Volatility in gold prices rose during November, with
budget cuts in the years beyond 2014. However, there are prices both rising and declining sharply on various
likely to be some increases in taxes and reductions in occasions during the month. Monthly average price
government spending, so the question is how much weak- volatility was 20.8%, which was the highest level of
ness should be expected in the first half of 2013, regard- monthly price volatility since July of this year. Price
less of the outcome of the political discussions. More im- volatility should be expected to continue rising dur-
portant for the matters at hand, the gold market, along ing December, as markets focus on the fiscal cliff
with broader financial markets and economic conditions issue in the United States. November began with gold
around the world, will be held hostage to a bathetic politi- prices declining sharply. Prices settled at $1,675.20
cal melodrama over the remainder of December. on 2 November, down from a settlement price of
$1,715.50 the previous day. Prices recovered from

Gold Price Volatility and Gold Fabrication Demand

Gold Price Volatility Annual Total Fabrication Demand
Monthly, Through November 2012 Million Ounces Million Ounces
120 120
90%
110 110
80% 100 Other 100
70% 90 90
80 80
60% Electronics
70 Jewelry, Developed 70
50%
60 60
40% Dental
50 50
30% 40 40
30 30
20%
20 Jewelry, Developing Countries 20
10%
10 10
0% 0 0
75 78 81 84 87 90 93 96 99 02 05 08 11 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11e


this sharp decline over the next two trading session, increase demand for gold from India. The strength in
reaching an intraday high of $1,720.9 on 6 November the Indian rupee helps to reduce the cost of importing
and settling at $1,715 that day. Prices began to soften gold. These factors could collectively result in some
toward the end of the month, with the sharpest de- strength in gold fabrication demand from India.
cline seen on 28 November, when prices settled at
$1,716.50 (around where they were at the beginning Official Transactions
of the month), down $25.80 from the previous day.
The weakness in prices continued into the first few Central banks added on a net basis, 1.61 million
days of December. ounces of gold to their holdings in October. Gross
additions to holdings during the month were 1.75
million ounces, and gross reductions were 141,000
Fabrication Demand ounces.
India is presently in the middle of its marriage sea- The central bank of Turkey added 564,000 ounces of
son, traditionally a strong gold buying season. The gold to its holdings in October, making it the largest
recent weakness in the price of gold coupled with central bank buyer of gold during the month. The
some strength in the Indian rupee is likely to help Turkish central bank’s holdings reached 10.28 mil-

Official Transactions and Supply

Official Sector Gold Reserve Levels Total World Mine Production
Million Ounces Million Ounces Million Ounces Million Ounces
1,160 1,160 90 90
Indonesia
1,140 1,140 85 85
80 Canada 80
1,120 1,120 75 75
70 Peru 70
1,100 1,100 65 Australia 65
60 60
1,080 1,080 55 United States 55
1,060 1,060 50 50
45 45
1,040 1,040 40 40
35 35
1,020 1,020 30 30
25 South Africa 25
Other Market Economies
1,000 1,000 20 20
980 980 15 15
10 Russia China 10
960 960 5 Transitional Economies 5
0 0
940 940 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 0911e
80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12p

Official Sector Changes In Gold Holdings Official Sector Changes In Gold Holdings in 2009 - October 2012
2012 Through October Excludes China, India and IMF Transactions,
Million Ounces Million Ounces
30 30
7.0 7.0
25 25
Net Additions/Reductions Gross Additions
20 20 6.0 6.0
Gross Reductions
15 15 5.0 5.0
Gross Additions
10 10 Net Additions/Reductions
4.0 4.0
5 5
0 0 3.0 3.0
-5 -5 2.0 2.0
-10 -10 1.0 1.0
-15 -15
0.0 0.0
-20 -20
Gross Reductions -1.0 -1.0
-25 -25
-30 -30 -2.0 -2.0
04 05 06 07 08 09 10 11 12 Jan-09 Aug-09 Mar-10 Oct-10 May-11 Dec-11 Jul-12


lion ounces, a record high, in October. The central during the first 10 months with gross reduction of
bank of Brazil added 552,000 ounces of gold to its 290,000 ounces.
holdings in October, taking total holdings of gold to
1.69 million ounces. This was the second consecutive Supply
month that the central bank added gold, after making
no additions to holdings between October 2001 and The global production-weighted cash cost for gold
August 2012. The central bank of Kazakhstan re- mining continued to rise during the third quarter of
sumed purchasing gold after being a seller of the 2012 reaching $733/ounce, up from $730/ounce in
metal in September. The central bank purchased the second quarter of 2012 and $662/ounce in the
242,000 ounces of gold in October, raising its hold- third quarter of 2011. On average the global gold
ings to a record high 3.6 million ounces. mining industry is still enjoying a healthy margin
between cash costs and gold prices. The average
The Bank of International Settlements’ gold holdings price of gold during the third quarter of 2012 was
rose by 371,429 ounces in October. Other central $1,654.37. The price of gold has not been rising in
banks that added gold to their holdings included the the same fashion as it was in the past few years. This
central bank of Russia (13,000 ounces), Mongolia coupled with continuing increases in cash costs is
(1,000 ounces), Greece (1,000 ounces), and Belarus squeezing producer margins. During the third quarter
(2,000 ounces). of 2011 the average price of gold was $1,700 and
The central banks of Germany reduced its holdings cash costs were $662/ounce, giving producers an av-
by 135,000 ounces in October to 109.03 million erage margin of $1,038/ounce in that quarter.
ounces. This was the second time that Germany re-
duced its holdings this year, with the first reduction
made in June. The central bank of Mexico reduced its Investment Demand
holdings for the sixth consecutive month in October,
taking its total holdings of gold to 4.01 million Gold exchange traded product holdings continued to
ounces. This level of gold holdings is still 600,000 rise in November. Total holdings reached 86.3 mil-
ounces higher than levels at the end of 2011. lion ounces at the end of the month, up 932,050
Reported net additions to central bank gold holdings ounces from 85.4 million ounces at the end of Octo-
during the first 10 months of the year were 10.76 mil- ber. Holdings continued to rise during the first few
lion ounces, driven entirely by an increase in gross days of December, reaching a record high 86.5 mil-
purchases made by central banks. Gross additions to lion ounces on 4 December. Even though holdings
central bank gold holdings were 11.06 million ounces are at record levels, the net additions to holdings have

Investment Demand

Month-end Change in ETF Gold Holdings and % Change in Gold Price Exchange Traded Funds' Physical Gold Holdings
Through November 2012 Million Ounces Million Ounces
% Change 100 100
Million Ounces Japan HDFC
40% 8 Religare SBI
90 Quantum Reliance
90
Change in ETF Gold Holdings
Kotak UTI
Gold Price %Change M-t-M 80 AUUSA CSGLDE 80
30% 6
CSGLDC CSGOLD
70 SGLD SGLN 70
20% 4 AGOL GLTR
60 CGL GBEES 60
Sprott German
50 Turkey SGBS 50
10% 2
GOLD NYSE
40 JB ETF 40
0% 0 ZKB IAU
30 GLD GLD 30
GBS GOLD
-10% -2 20 CGT CEF 20
10 10
-20% -4
Jan-07 May-08 Sep-09 Jan-11 May-12 - 0
20032004 2005 2006 2007 2008 2009 2010 2011 2012
Note: Data as of 30 November 2012


not been very strong. The strength in this incremental end of November, total open interest was 44.3 mil-
demand is more important to price increases. lion ounces and was down to 43.4 million ounces by
Investors in exchange traded funds were seen adding 4 December.
to their holdings when the price of gold was declin- Open interest in the December Comex contract de-
ing or was relatively depressed. This shows that in- clined over the course of November as market par-
vestors remain interested in the metal but are also ticipants either rolled forward or closed out their po-
price sensitive and are reluctant to purchase the metal sitions. Open interest in this contract slipped from
when prices rise. 29.7 million ounces at the beginning of November to
462,300 ounces at the end of the month. Open inter-
Markets and Inventories est in the nearby active February Comex contract was
at 28.6 million ounces on 4 December, down from
Total open interest in the Comex gold futures con- 29.3 million ounces at the end of November.
tract rose to 49.3 million ounces on 23 November, Gold delivered via the December Comex contract
from 45.7 million ounces at the end of October. Total totaled 240,100 ounces as of 5 December. Comex
open interest softened over the remainder of Novem- registered inventories rose by 67,830 ounces on 5
ber and into the first few days of December. At the December from 2.53 million ounces at the end of
November. Total eligible stocks meanwhile declined

Markets and Inventories
Gross Long and Short Positions of Comex Disaggragated Non-Commercial Positions Gross Long and Short Positions of Non-Commercial Positions
Comex Gold Futures and Options. Weekly Data, Through 27 November 2012 Comex Gold Futures & Options.Weekly Data,through 27November 2012
35 35 Million Ounces Million Ounces
Money Managers Long 35 35
30 Other Traders 30
Net Position 30 30
25 25 Long
25 25
20 20 20 20
Net Fund Position in Comex
15 15 15 15
10 10 10 10

5 5 5 5
0 0
0 0
-5 -5
-5 Short -5 Short
-10 -10
-10 -10 A-95 D-96 J-98 M-00O-01 J-03 J-05 S-06 A-08 D-09 A-11
Jun-06 Apr-07 Mar-08 Jan-09 Nov-09 Oct-10 Aug-11 Jun-12

Comex Gold Inventories & Total Open Interest O Gold Price and Total Open Interest
M
Daily, Through 5 December 2012 Daily, Through 5 December 2012
Million Ounces Million Ounces $/Ounce Million Ounces
13 70 2,000 70
12 Total Open Interest (Right Scale)
1,800 65
11 60
10 1,600 60
9 50 55
1,400 Total Open Interest
8 50
40 1,200
7
45
6 1,000
Eligible Stocks 30 Gold 40
5
800
4 20 35
3 600 30
2 10 400
Registered Stocks 25
1
0 0 200 20
J-06 A-06 A-07 D-07 J-08 M-09O-09M-10 J-11 A-11M-12N-12 2004 2005 2006 2007 2008 2009 2010 2011 2012


by 54,713 ounces to 8.8 million ounces over the same ber, reducing the increase in net long positions, to
period of time, which resulted in total Comex inven- 3.04 million ounces on 27 November from 2.7 mil-
tories rising to 11.4 million ounces on 4 December, lion ounces on 30 October.
up 13,117 ounces from the end of November.
Net long positions held by large non-commercial Clearing activity by member banks of the London
market participants rose during November reaching Bullion Market Association declined to 19.9 million
21.2 million ounces on 27 November from 19.3 mil- ounces in October on average per day from 22.4 mil-
lion ounces on 30 October. The increase in net long lion ounces in September. The average value traded
positions was driven entirely by an increase in gross per day declined to $34.7 billion in October from
long positions, which reached 24.2 million ounces on $39.2 billion in September. The average number of
27 November from 22.1 million ounces at the end of transfers slipped to 2,453 in October from 2,911 in
October. Gross short positions rose during Novem- September.

Bullion Coins
Monthly U.S. Eagle and Buffalo Gold Coin Sale s by the U.S. Mint
Monthly U.S. Mint Gold Coin Sales to Dealers
Month 2010 2011 2012
Thousand Ounces Thousand Ounces
350 350 January 85,000 133,500 140,500
Fe bruary 84,000 92,500 28,000
300 300 March 102,000 111,500 88,500
April 117,000 128,500 29,000
250 250 May 260,500 122,500 62,500
June 185,000 67,000 70,000
200 200 July 175,000 76,500 34,500
August 57,000 140,000 48,000
150 150 Se pte mbe r 98,000 104,000 77,000
O ctobe r 94,000 62,500 70,000
100 100 Nove mbe r 112,000 49,500 153,000
De ce mbe r 60,000 86,500
50 50
YTD Total June 2012 1,369,500 1,088,000 801,000
% Change YOY -0.6% -20.6% -26.4%
0 0
92 94 96 98 00 02 04 06 08 10 12 Annual Total 1,429,500 1,174,500 801,000
% Change Previous Year -12.0% -17.8%

World Gold Supply and Demand Gold Quarterly Average Price Projections
Million Ounces $/Ounce, through Q3 2014

140 140 $2,000 $2,000
130 Investment Demand 130
120 120 $1,800 $1,800
110 110
$1,600 $1,600
100 100
Available Supply
90 90 $1,400 Projections $1,400
80 80 Actual
$1,200 $1,200
70 70
60 60 $1,000 $1,000
50 50
$800 $800
40 40
30 30 $600 $600
Fabrication Demand
20 20
$400 $400
10 10
0 0 $200 $200
50 53 56 59 62 65 68 71 74 77 80 83 86 89 92 95 98 01 04 07 10 13p 2002 2004 2006 2008 2010 2012 2014


Bullion Coins Sales during the first 11 months of 2012 declined to
124,000 ounces, down 19.2% from the same period
U.S. Mint gold coin sales reached 153,000 ounces in in 2011.
November, the highest level reached since July 2010 Premiums on both the American Eagle and American
when sales had totaled 175,000 ounces. Sales during Buffalo gold coins remained mostly flat during No-
the first 11 months of 2012 totaled 801,000 ounces, vember. This suggests that the market was well sup-
down 26.4% over the same period in 2011. On a year plied and could potentially result in softening in de-
-on-year basis, sales during November 2012 were up mand from dealers in December.
209%, however.
U.S. Mint American Eagle gold coin sales reached
136,500 ounces during November 2012, the highest
level of sales for these coins since July 2010. Sales of
these coins during the first eleven months of the year
reached 677,000 ounces, down 27.6% from the corre-
sponding period in 2011.
American Buffalo gold coin sales continued to rise in
November reaching 16,500 ounces during the month.
This was up from 8,500 ounces from the same period
in 2011 and up from 11,000 ounces in October 2012.


Gold Statistical Position
Million Ounces
Supply 2007 2008 2009 2010 2011 2012p 2013p
Mine Production
China 8.7 9.1 10.1 11.0 11.6 12.3 13.0
Australia 7.9 6.9 7.2 8.4 8.3 8.1 8.4
United States 7.7 7.5 7.2 7.4 7.6 7.2 7.4
South Africa 8.2 7.1 6.6 6.2 6.0 5.3 5.1
Peru 5.5 5.8 5.9 5.3 5.3 5.4 5.5
Indonesia 3.7 2.1 4.0 3.4 2.5 1.8 2.0
Canada 3.3 3.1 3.1 2.9 3.2 3.2 3.1
Other Market Economies 20.4 21.5 23.1 24.6 25.0 26.0 28.0
Total 65.3 62.9 67.1 69.2 69.4 69.3 72.6
% Change Year Ago -0.7% -3.6% 6.6% 3.1% 0.3% -0.2% 4.8%
Secondary Supply 33.8 39.8 41.2 40.3 40.6 40.7 38.3
% Change Year Ago 22.5% 17.8% 3.7% -2.1% 0.5% 0.3% -6.0%
Transitional Economy
Sales 11.3 12.0 10.5 9.7 9.0 7.5 7.0
% Change Year Ago 9.7% 6.2% - -7.6% - - -
Total Supply 110.3 114.7 118.8 119.2 119.0 117.6 118.1
% Change Year Ago 6.5% 4.0% 3.6% 0.3% -0.2% -1.2% 0.4%
Fabrication Demand
Industrial Demand
Electronics 9.1 9.1 7.9 8.5 8.5 8.4 8.6
Dental/Medical 2.5 2.4 2.2 2.2 2.1 2.1 2.1
Other 3.9 4.6 4.1 4.1 4.7 4.8 4.9
Total 15.4 16.1 14.2 14.8 15.3 15.3 15.6
% Change Year Ago 15.6% 4.2% -11.9% 4.6% 3.1% 0.0% 1.8%
Jewelry
Developed Countries 14.9 12.4 9.4 8.7 8.4 8.2 8.1
Developing Countries 60.0 58.4 48.0 49.6 49.1 51.0 53.8
Total 74.9 70.8 57.3 58.3 57.5 59.2 61.8
% Change Year Ago -0.8% -5.5% -19.0% 1.7% -1.4% 3.0% 4.5%
Total Fabrication Demand 90.4 86.9 71.4 73.1 72.7 74.5 77.4
% Change Year Ago 1.7% -3.9% -17.8% 2.4% -0.5% 2.4% 3.9%
Stock Demand
Total Official Transactions -16.0 0.2 16.8 10.1 12.7 11.0 9.0
% Change Year Ago 37.2% NM NM -39.9% 25.9% -13.6% -18.2%
Net Private Investment
Official Coins 4.4 5.0 6.0 6.3 4.5 4.1 3.6
Bullion 28.8 18.1 20.1 24.7 26.0 25.4 25.6
Medallions 2.8 4.5 4.5 5.0 3.0 2.7 2.4
Total 36.0 27.6 30.6 36.0 33.5 32.1 31.7
% Change Year Ago 36.5% -23.3% 10.7% 17.8% -6.9% -4.1% -1.4%
Total Stock Demand 20.0 27.8 47.4 46.1 46.3 43.1 40.7
% Change Year Ago 36.0% 39.3% 70.4% -2.7% 0.3% -6.7% -5.6%
Total Demand
(Fabrication Plus Stock Change) 110.3 114.7 118.8 119.2 119.0 117.6 118.1
Price Per Ounce YTD
High $842.70 $1,004.30 $1,218.30 $1,421.40 $1,889.70 $1,796.50
Low 606.90 705.00 807.30 1,052.80 1,318.40 1536.60
Average 700.11 872.82 974.70 1,228.63 1,572.00 1669.27
% Change Year Ago 15.4% 24.7% 11.7% 26.1% 27.9% 6.5%
*Million Ounces; Source: CPM Group; Notes: There may be discrepancies in totals and percent changes due to rounding; Net official sales are indicated by negative numbers; The price
is the Comex nearby active settlement, 2012 Through 11 October. Longer term projections are available in CPM Group's Gold Supply, Demand, and Price: 10-Year Projections report; e
-- estimates; p -- projections; NM -- Not meaningful; December 5, 2012


Silver Outlook
Silver prices rose last month, after trending lower in Oc- volumes in the Comex silver futures market are down
tober. The roll of the December contract into the March about 30%, clearing volumes in the London interbank
and forward month contracts helped boost prices. This market are 20% lower this year than last year, silver Ea-
coupled with seasonal demand for the metal ahead of Di- gle bullion sales are down 15% year-to-date, and silver
wali, contributed to the 11.3% trough-to-peak increase in ETP net purchases are the lowest seen since 2005
settlement prices between 2 and 29 November. (excluding 2011 when investors sold a net of 24.4 million
ounces of silver ETPs). CPM Group is projecting invest-
Silver prices have been trending lower since April of last ment demand for silver to fall to 124.3 million ounces in
year. Each price rally has ended at lower highs. Intraday 2012 from 133.2 million ounces last year. A further de-
peaks went from $49.82 in April 2011 to $44.09 in Au- cline in investment demand to 102.0 million ounces in
gust 2011 to $37.48 in February 2012 to $35.45 in Octo- projected for 2013 while prices may come off by 8%
ber 2012 to the most recent peak of $34.35 on 29 Novem- from 2012 levels.
ber. Price support throughout this period has been firmly
positioned at $26.25. Going forward CPM Group expects Silver prices are projected to move sideways to lower this
further declines in silver prices, driven by continued month amid reduced trading activity during the holiday
weakness in industrial demand and rising supply. These season in the Western hemisphere. Investor concerns
future declines, however, may be limited. Over the past about the fiscal cliff so far have appeared immaterial to
year, despite a broad decline in the price of the metal, the silver market. It seems investor views about the ap-
investors have remained relatively interested in silver as a
form of investment. Investors have purchased a net of Silver Prices: 1 January 2010 to 5 December 2012
40.6 million ounces of silver exchange traded products
$ / Oz
(ETPs), more than reversing the 24.4 million ounces of
52
silver ETPs sold during 2011. Last month, the U.S. Mint
48
witnessed a spike in November bullion coin sales, selling 44
3.2 million ounces of silver Eagle bullion coins, up 40
128.3% from last November, to authorized dealers. Also, 36
net long positions held by non-commercial Comex mar- 32
ket participants in silver futures and options have been 28
increasing since July and open interest in Comex silver 24
futures rose above levels seen in April of last year when 20
prices peaked last month. 16
12
Even though investment demand has been positive this 8
year thus far, 2012 pales in comparison to 2011. Trading

Silver Quarterly Average Price Projections to Q3 2014
$ / Ounce
Quarterly
$48 $48 Year Quarter Change Annual AVG Change
AVG
$44 $44
$40 $40
2012 IV $32.72 9.7% $31.32 -6.0%
$36 $36 2013 I $29.47 0.9%
Actual
$32 $32
II $30.08 -8.0%
$28 $28
III $32.99 -4.0%
$24 $24
$20 $20 IV $33.28 3.0% $30.89 -1.3%
$16 $16 2014 I $30.62 4.0%
Projections
$12 $12
II $29.40 -1.0%
$8 $8
2009 2010 2011 2012 2013 III $30.28 -6.0%


proaching fiscal cliff are mixed, resulting in no net im- and Australian output is up 19.1% so far this year.
pact on price direction. Prices may rise in January and Chilean and Bolivian output both declined strongly
February, ahead of the March contract delivery period at this year relative to 2011.
the end of February and due to portfolio rebalancing. Approximately 25 new silver-producing mines began
Prices are expected to trade above $30 and below $35.50 production this year so far, four of which are primary
over the next three months. silver mines. The largest mine by annual silver ca-
pacity is Aurcana’s Shafter mine in the United States,
Prices which started production in the first half of the year.
The second largest was Mawson West’s Dikulushi
Silver prices trended higher in November. Continu- mine in the Democratic Republic of Congo. These 25
ing a decline that began in October, silver prices fell mines will add around 15.0 million ounces to silver
during the first three days of the month. Silver traded mine production capacity once fully ramped up.
to an intraday low of $30.66 on 5 November, the
lowest price since the first half of September. Prices Fabrication Demand
began to rise thereafter, touching an intraday peak of
$34.40 on 29 November, a 12.2% increase from the 5 Net imports of silver in China fell to 5.7 million
November intraday trough. Silver settled at $33.20 ounces in October, down from 6.2 million ounces in
on 3 November, down 3.3% from the previous day.
Prices averaged $32.82 last month, down 1.1% from
the previous month, despite rising prices. Silver Supply
Silver price volatility rose last month to 29.0% from World S ilver Mine Production
19.0% in October. This was the highest monthly Million Troy Ounces
volatility rate since June. Jan- S ept %∆
2011 2012
Supply M exico 113.1 122.5 8.3%
China 77.9 106.9 37.1%
Silver mine production fell to 68.1 million ounces in Peru 81.0 83.4 3.0%
September from 69.2 million ounces the previous Australia 40.0 47.6 19.1%
month, according to the World Bureau of Metal Sta- Chile 31.3 27.2 -13.1%
tistics. Silver output from mines rose to 608.5 million Bolivia 29.3 26.4 -9.8%
ounces this year through September, up 8.3% from Subtotal 372.6 414.0 11.1%
562.0 million ounces in the same period in 2011. Other Countries 189.4 194.5 2.7%
Output in Mexico, China, Peru, and Australia rose Total 562.0 608.5 8.3%
during the first nine months of the year relative to
2011. Chinese silver mine production is up 37.1% Source: WBM S
Note: Russia, the sixth largest silver-producing country, was
Silver Prices excluded due to lack of comparable data.

Silver Price Volatility Monthly Silver Mine Production
Monthly, Through November 2012 Through September 2012
Mln Oz
100% 71
90%
69
80%
70% 67

60% 65
50% 63
40%
61
30%
59
20%
10% 57
0% 55
75 78 81 84 87 90 93 96 99 02 05 08 11 Apr-10 Aug-10 Dec-10 Apr-11 Aug-11 Dec-11 Apr-12 Aug-12


September and 6.1 million ounces in October 2011. pacity of farmers, which make up about 70% of In-
Gross imports were lower and gross exports were dia’s work force.
higher last month relative to September.
Demand for silver in India for Diwali and the wed- Investment Demand
ding season benefited from high gold prices last
month, but overall demand may have been flat to Silver exchange traded product holdings increased by
lower year-on-year. Gold and silver sales in cities 1.1% of 6.7 million ounces last month from 601.4
appeared positive, but rural areas posted weak de- million ounces at the end of October. Holdings rose
mand, mostly due to the delay of harvesting. Adverse to a monthly peak of 612.2 million ounces on 15 No-
monsoon weather delayed harvesting activities by vember, just shy of the record high of 615.1 million
approximately a month. This limited the buying ca- ounces reached on 25 April 2011. Holdings declined

Silver Demand
Production-Weighted World Industrial Production Chinese Silver Imports and Exports
Percentage Change from a Year Ago, Through September 2012 Monthly, Through October 2012
15%
25 25

10% 20 20

15 15
5%
10 10

5 5
0%
0 0

-5% -5 -5

-10 -10
-10% Gross Imports
-15 -15
Gross Exports
-15% -20 -20
Net Trade
2005m01 2006m04 2007m07 2008m10 2010m01 2011m04 2012m07
-25 -25
Source: CPB Netherlands Bureau for Economic Policy Analysis J-05 S-05 M-06 J-07 S-07 M-08 J-09 S-09 M-10 J-11 S-11 M-12

Silver Investment Demand
Silver Exchange Traded Product Holdings S ilver ETP Holdings
Through 30 November 2012 Data as of 30 November, Changes from 31 October
Mln Oz
700
Japan SSLV Month-end Holdings %∆ Ounce ∆
SSLN WITE CEF 76,964,103 - 0.0% 0
600
GLTR PSLV S LV iS hares 314,448,448 ↓ -1.4% -4,589,504
SVR.UN SBT.U ETF - ETFS 28,649,144 ↑ 2.6% 733,212
500
Julius Baer SIVR ZKB ZKB S ilver 88,742,680 ↑ 1.6% 1,367,048
MSL PHAG S ilver MS L 2,267,399 ↓ -1.3% -30,852
400
S IVR - ETFS 18,417,787 ↓ -0.6% -103,618
300 Julius Baer S ilver 17,222,990 ↑ 3.1% 515,000
GLTR - ETFS 3,143,830 ↓ 0.0% 0
SLV
200 WITE - ETFS 3,347,751 ↓ -2.8% -95,306
PS LV 49,287,863 ↑ 21.8% 8,814,961
100 S VR 2,335,561 ↑ 2.3% 52,647
CEF S BT 740,423 ↓ -0.1% -1,052
0 S S LN -iS hares 487,905 ↓ 0.0% -230
02 07 08 09 10 11 12
S S LV 319,641 ↑ 64.6% 125,468
Note: CEF-Central Fund of Canada traded on the Toronto Stock Exchange. SLV-iShares Silver
S ilver Mitsubishi 1,652,548 ↓ -6.9% -122,173
Trust traded on the American Stock Exchange. ZKB-Zurich Cantonal traded on the Swiss Exchange.
ETF-ETF Securities traded on the London Stock Exchange and Australian Securities Exchange, and Total 608,028,073 ↑ 1.1% 6,665,602
New York Stock Exchange. Julius Baer traded on the Swiss Exchange. SIVR-ETF Securities traded
YTD Net Additions to Total ETF Holdings* ↑ 7.2% 40,596,837
on the New York Stock Exchange. MSL-ETF Securities traded on the Australian Stock Exchange.
GLTR—ETF Securities traded on NYSE. WITE—ETF Securities traded on NYSE. SSLN—iShares *YTD data through 30 November. Percentage change is from end of
ETP traded on the London Stock Exchange. SSLV—Source ETP traded on the London Stock Ex-
change. Silver Mitsubishi—Mitsubishi’s silver ETP traded at the Tokyo Stock Exchange.
previous year.


on 30 October to 215.5 million ounces on 27 Novem-
thereafter, to 608.0 million ounces on 30 November. ber, according to CFTC data. Net long positions held
Silver ETP holdings are up 7.2%, or 40.6 million by these market participants have been trending
ounces, this year so far. higher since the beginning of July. Gross long posi-
tions rose by 26.1 million ounces while gross short
Coins positions increased 3.5 million ounces during the pe-
riod.
The U.S. Mint delivered 3.2 million ounces of silver The daily average number of ounces transferred in
Eagle bullion coins to authorized dealers in Novem- the London interbank market during October was
ber, up 128.3% from 1.4 million ounces delivered in 98.1 million ounces, down from 124.3 million ounces
November 2011. Coins sales by the U.S. Mint are in the previous month. The daily value of ounces
down 15.5% so far this year from the same period in transferred averaged $3.26 billion, down from $4.18
2011. billion in September and the number of transfers fell
to 757 from 967 in the previous month.
Markets and Inventories

Open interest in Comex silver futures rose from Silver Markets
696.2 million ounces on 31 October to 774.4 million
ounces on 23 November, an 11.2% increase. Open Comex Silver Inventories & Total Open Interest O
M
interest in Comex silver futures has been increasing Daily, Through 5 December 2012
since December of last year. The 23 November peak Mln Ozs Mln Ozs
was higher than the April 2011 peak of 764.7 million 1,000 1,000
ounces. Open interest came off after 23 November, 900 Total Open Interest 900
falling to 722.1 million ounces on 3 December. 800 800
Open interest in the most active nearby March con- 700 700
tract was 446.1 million ounces on 30 November. This 600 600
was 3.1 times the amount of metal stored in Comex 500 500
warehouses.
400 400
Daily trading volumes of Comex silver futures aver-
300 300
aged 326.7 million ounces in November, 71.7% Registered Stocks
Eligible Stocks
200 200
higher than the daily average rate of 190.1 million
100 100
ounces in October.
0 0
Large non-commercial market participants’ net long J-06 O-06 A-07 M-08 M-09 D-09 S-10 J-11 M-12
positions increased 11.7% from 192.9 million ounces

Bullion Coins
Monthly U.S. Eagle Silve r Coin Sale s by the U.S. Mint

U.S. Mint Silver Coin Sales Month 2010 2011 2012
January 3,592,500 6,422,000 6,107,000
Million Ozs Million Ozs
Fe bruary 2,050,000 3,240,000 1,490,000
6.5 6.5
March 3,381,000 2,767,000 2,542,000
6.0 6.0
April 2,507,500 2,819,000 1,520,000
5.5 5.5
5.0 5.0 May 3,636,500 3,653,500 2,875,000
4.5 4.5 June 3,001,000 3,402,000 2,858,000
4.0 4.0 July 2,981,000 2,968,000 2,278,000
3.5 3.5 August 2,451,000 3,679,500 2,870,000
3.0 3.0 Se pte mbe r 1,880,000 4,460,500 3,255,000
2.5 2.5 O ctobe r 3,150,000 3,064,000 3,153,000
2.0 2.0 Nove mbe r 4,260,000 1,384,000 3,159,500
1.5 1.5 De ce mbe r 1,772,000 2,009,000
1.0 1.0 YTD Total June 2012 18,168,500 37,859,500 32,107,500
0.5 0.5
% Change YOY 351.4% 108.4% -15.2%
0.0 0.0
92 9394 95 96 97 Annual Total 34,662,500 39,868,500 32,107,500
% Change Previous Year 48.1% 15.0%


Silver Markets
Gross Long and Short Positions of Non-Commercial Positions Gross Long and Short Positions of Commercial Positions
Comex Silver Futures and Options. Weekly Data, Through 27 November 2012 Comex Silver Futures and Options. Weekly Data, Through 27 November 2012
Mln Ozs Mln Ozs
Mln Ozs Mln Ozs
400 400 400 400
Net Fund Position in Comex
350 350 Long
300 300
Net Position
300 300 200 200
250 Long 250 100 100
200 200 0 0
150 150 -100 -100
100 100 -200 -200
50 50 -300 -300
0 0 -400 -400
-50 -50 -500 Short -500
-100 -100 -600 -600
Short
-150 -150 -700 -700
-200 -200 -800 -800
A-95 M-97 J-99 A-01 S-03 N-05 D-07 J-10 F-12 A-95 M-97 J-99 A-01 S-03 N-05 D-07 J-10 F-12

Gross Long and Short Positions of Comex Disaggragated Non-Commercial Positions
Comex Silver Futures and Options. Weekly Data, Through 27 November 2012
Silver Prices and Open Interest
Daily, Through 5 December 2012
Mln Ozs Mln Ozs
400 400 $/Ounces Million Ounces
Long 52 1,000
300 300 48 900
Total Open Interest
44
40 800
200 200 36 700
32 600
100 100 28
500
24
20 400
0 0
16 300
12 200
Money Managers
-100 -100 8
Other Traders 4 Prices (Left Scale) 100
Short
Net Position 0 0
-200 -200
03 04 05 06 07 08 09 10 11 12 13
Jun-06 Apr-07 Feb-08 Dec-08 Oct-09 Aug-10 Jun-11 Apr-12

World Silver Supply and Demand Silver Quarterly Average Price Projections
$/Ounce, through Q3 2014

$46 $46
1,100 1,100
$42 $42
1,000 1,000 $38 $38
Fabrication Demand
900 900 $34 $34

800 800 $30 $30
Actual
$26 $26
700 700
$22 $22
600 Supply 600
$18 $18
Projections
500 500 $14 $14

400 400 $10 $10
$6 $6
300 300
$2 $2
200 200 1999 2002 2005 2008 2011 2014
60 63 66 68 72 75 78 81 84 87 90 93 96 99 02 05 08 11


Silver Statistical Position
Million Ounces

Supply 2007 2008 2009 2010 2011 2012p 2013p
Mine Production
Mexico 99.5 104.1 114.3 128.6 152.8 160.9 161.3
United States 39.0 40.2 39.9 40.8 36.0 34.3 35.4
Peru 112.3 118.5 126.1 116.9 109.8 109.0 111.4
Canada 27.7 24.3 20.3 19.2 18.4 17.8 18.8
Australia 60.5 61.9 52.5 60.4 55.5 57.0 58.2
China 97.9 96.3 107.9 112.5 128.6 135.4 142.7
Other 190.2 189.6 212.8 207.8 212.6 208.5 217.4
Total 627.1 634.8 673.8 686.2 713.6 722.9 745.1
% Change Year Ago 5.0% 1.2% 6.1% 1.9% 4.0% 1.3% 3.1%
Secondary Supply
Old Scrap 242.2 251.5 249.9 262.8 270.8 263.0 255.0
Coin Melt 5.0 4.0 4.0 2.0 1.5 3.0 3.0
Other Supply 0 1 2 3 4 5 6
Indian Scrap 16.1 17.5 21.7 15.7 4.8 13.8 10.0
Total 263.3 273.0 275.6 280.5 277.1 279.8 268.0
% Change Year Ago -1.9% 3.7% 1.0% 1.8% -1.2% 1.0% -4.2%
Other Supply
Government Disposals 8.0 0 0 3.8 2.4 0 0
Net Exports from
Transitional Economies 5 3 1 2 2 2 2
Total 13 3 1 5.8 4.4 2 2
% Change Year Ago -45.8% -76.9% -66.7% 480.0% -23.5% -55.0%
Total Supply 903.4 910.8 950.4 972.5 995.1 1,004.7 1,015.1
% Change Year Ago 1.5% 0.8% 4.3% 2.3% 2.3% 1.0% 1.0%
Fabrication Demand
Photography 161.5 133.5 119.4 110.9 102.6 96.8 93.1
Jewelry & Silverware 284.7 278.9 276.5 286.5 290.9 296.1 308.0
Electronics and Batteries 195.9 204.3 201.1 212.8 221.8 234.4 248.4
Solar Panels 6.3 15.5 22.6 48.6 59.8 60.2 64.0
Other Uses 212.3 213.5 176.4 178.3 178.8 183.2 189.5
Other Countries 8.2 9.7 7.5 6.5 8.0 9.7 10.0
Net Imports into the
Transitional Economies
Total Fabrication Demand 869.0 855.3 803.6 843.5 861.9 880.4 913.0
% Change Year Ago 1.3% -1.6% -6.1% 5.0% 2.2% 2.1% 2.6%
Net Surplus or Deficit 34.4 55.5 146.8 129.0 133.2 124.4 102.0
Addenda
Coinage 29.2 54.4 66.2 82.5 98.7 79.7 70.9
Price Per Ounce YTD
High $15.55 $20.79 $19.33 $30.94 $48.58 $37.14
Low 11.50 8.79 10.44 14.83 26.81 26.25
Average 13.45 14.97 14.67 20.31 35.29 31.15
% Change Year Ago 15.9% 11.3% -2.0% 38.4% 73.8% -12.8%

*Million Ounces; Notes: Totals may not equal the sum of categories due to rounding. Mine production in Poland, Bulgaria, Romania, Hungary, the Czech Republic, and Slovakia is included in "other" mine
production; Photography, jewelry and silverware, electronics, and 'other' industrial use reflects demand in Europe, the United States, and Japan.; These sectors include Canada from 1979, Mexico from 1982,
Hong Kong from 1985, Thailand from 1986, India from 1987, Australia, Brazil, Peru, Colombia, Argentina, Chile, Korea, Pakistan, and Bangladesh from 1989, and Taiwan from 1990; Demand excludes the
transitional economies, except for imports.; The price is the Comex nearby active settlement, percent change from year earlier period. 2012 through 6 December. There may be discrepancies due to rounding; p
- projections; NM - Not meaningful; Source: CPM Group 6 December 2012.


Platinum Outlook
Platinum prices may trend higher over the next three ment rate stood at 25.5% in the third quarter of the year
months, driven by portfolio rebalancing, investor con- and has been rising since the fourth quarter of 2011.
cerns about the uncertainty of supply flows from South South Africa’s chronically high unemployment rate is
Africa, and the roll of the nearby active January contract one contributing factor to the increase in illegal strike
into forward months. Fabrication demand weakness in activity this year, as many mine workers are supporting
Europe is expected to limit price increases over the next unemployed family members and experiencing extreme
three months, however. Prices could rise toward $1,700 cost pressures. Discussions about transitioning to a cen-
and remain above $1,540 over the three-month projected tralized wage-bargaining structure for the platinum min-
period. ing industry have been progressing. The gold mining in-
dustry adopted this procedure long ago and authorities
Supply constraints eased in November after Anglo Plati- have been assessing the possibility of using this model in
num announced it had achieved a resolution to the illegal the platinum industry. This could reduce labor issues in
strikes at its Rustenburg, Union, and Amandabult opera- the future, but in the interim will serve as a source of un-
tions on 15 November. The company lost almost certainty to the platinum market.
200,000 ounces of potential platinum output since the
first strikes at the Rustenburg operations began in Sep-
tember. Atlatsa Resources reported it planned on restart-
ing operations at its jointly owned Bokoni mine. Strike
activity began there in October. CPM Group expected Platinum Prices: 1 January 2010 to 5 December 2012
mine supply in South Africa to decline to 4.1 million $ / Oz
ounces in 2012, down 12.1% from the previous year.
This compares to a 4.7% increase in South African output
1900
projected for 2012 at the beginning of the year.

The platinum industry in South Africa remains highly
vulnerable to supply shocks at present. Although illegal 1700
strike activity has abated substantially, there is still poten-
tial for more strikes to occur in the near future. According
to Susan Shabangu, the country’s Mineral Resources 1500
Minister, the platinum mining industry has shed 3,332
jobs in the past six months. South Africa’s unemploy-
1300

Platinum Quarterly Average Price Projections to Q3 2014
$ / Ounce
Quarterly
Year Quarter Change Annual AVG Change
AVG
$1,900 $1,900
2012 IV $1,604 6.5% $1,556 -5.4%
$1,700 Actual $1,700 2013 I $1,615 0.7%
II $1,567 -3.0%
$1,500 $1,500
III $1,527 -2.5%

$1,300 $1,300
IV $1,634 7.0% $1,586 1.9%

Projections 2014 I $1,693 3.6%
$1,100 $1,100 II $1,719 1.5%
III $1,658 -3.5%
$900 $900
2009 2010 2011 2012 2013 2014


In addition to wage issues, fresh concerns about the sup- tential output during the strike, which is about 4.1%
ply of electricity surfaced last month. Eskom, the main of South African platinum output in 2011. Workers
utility provider in the country, reported that its supply/ accepted Anglo’s wage offer, which increased
demand balance of electricity was extremely narrow due monthly base salaries by 400 South African rand and
to unplanned outages. This fresh uncertainty may be sup- included a one off allowance payable upon returning
portive of prices over the next few weeks. to work. CPM Group estimates that Anglo Platinum’s
output could be around 12% lower in 2012 from the
Prices previous year.
Impala Platinum reported results for the quarter
Prices trended higher last month, from an intraday ended 30 September last month. The company pro-
low of $1,534.50 on 7 November to an intraday high duced 454,000 refined ounces of platinum during the
of $1,626.60 on 23 November, a 6.0% increase. Plati- quarter, up 17.0% from 388,000 ounces produced in
num traded sideways after 23 November, mostly be- the same quarter in 2011. The company decided to
tween $1,580 and $1,625. Prices averaged $1,579.40 defer its phase 2 expansion plants at Zimplats to 2015
for the month, down 3.5% from the previous month. as part of its capital preservation measures. Cash
The monthly volatility rate fell to 15.7% in Novem- costs at Impala mines increased by around 15%, due
ber from 19.7% the previous month. This was lower to poor mining quality at its Rustenburg operations,
than the 24.9% rate in November of last year and was wage pressures, and adverse exchange rates.
the lowest monthly rate since July of 2011. The strike that began at the Bokoni mine, jointly
owned by Atlatsa Resources and Anglo Platinum, on
1 October may have ended or will come to an end
soon. Atlatsa reported in its 3 December press release
Supply that it was currently in the process of “re-hiring
workers with the view to re-commencing operations
Anglo Platinum restarted operations on 15 November as soon as possible.” The Bokoni mine is one of the
at its Rustenburg mines, where an illegal strike had highest cost mines in the industry and only produces
halted mining activities since 13 September, and its about 100,000 ounces of platinum a year.
Union and Amandelbult operations, where strike ac- Renewed concerns about South Africa’s power sup-
tion began in early October. These operations ac- ply surfaced in the first week of December. Eskom,
count nearly 60% of the company’s South African the main power provider in the country, reported it
platinum production capacity and roughly 30% of only had about 2% of excess supply of electricity.
total South African platinum production capacity. In The narrow margin was attributed to unplanned out-
the company’s 15 November press release, Anglo ages. About four years ago, the country experienced
Platinum reported it had lost 191,359 ounces of po- rolling blackouts due to an electricity shortage. These
blackouts halted PGM mining operations and contrib-
Platinum Prices uted to the PGM price spikes of 2008.

Platinum Price Volatility
Monthly, Through November 2012

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
75 79 83 87 91 95 99 03 07 11


Fabrication Demand year. Sales this year through November in Germany,
France, Italy, and Spain are down 1.2%, 13.7%
Commercial vehicle demand in the United States and 20.0%, and 12.8% year-on-year.
Japan are up 10.0% and 21.5% this year through Oc- Gross imports of platinum in China are up 2.5% this
tober from the same period a year ago. Commercial year through October from the same period in 2011.
vehicle sales in Western Europe and China are down Trading volumes of platinum on the Shanghai Gold
10.6% and 7.9%, respectively. Commercial vehicles Exchange are down 1.3% this year through Novem-
have large engines, which holding other factors con- ber from 2011 levels. Trading volumes in November
stant requires higher PGM loadings in the fitted auto fell to 161,525 ounces, down 0.9% from November
catalysts. These auto catalysts typically are more 2011.
platinum intensive, due to the sulfur content of the
diesel fuel often used. Investment Demand
Passenger car demand in Western Europe was 6.9%
lower in 2012 through October from the same period Investors were net sellers of platinum exchange
a year ago. Sales in the major auto markets last traded products in November, reducing their holdings
month were lower than last year’s sales levels. Ger- by 19,365 ounces or 1.3% from the end of October.
many’s auto market worsened last month. Sales fell Holdings totaled 1.5 million ounces on 30 November,
to 259,846 vehicles, down 3.5% from a year ago. up 15.0% from the end of 2011. Holdings are down
Auto sales in France, Italy, and Spain all showed 2.8% from a peak of 1.6 million ounces reached in
double-digit declines in November from the previous late September.

Platinum Fabrication Demand

Annual Growth in New Car Registrations in Europe Commercial Vehicle Sales in Major Auto Markets
Change over same period a year ago
2009 2010 2011 2012YTD
Y-o-Y % Chg. Y-o-Y % Chg.
Germany 24.4% -23.2% 8.2% -1.2% 40% 40%
France 10.9% 1.4% -2.5% -13.7% China USA Europe Japan
30% 30%
Italy -0.9% -10.4% -10.7% -20.0%
United Kingdom -6.6% 2.2% -4.9% 4.7% 20% 20%

S pain -16.8% 3.9% -17.9% -12.8% 10% 10%
Western Europe -1.7% -5.1% -1.3% -6.9%
0% 0%
S ource: ACEA via Bloomberg.
-10% -10%
Note: Country data through November, except for the U.K.,
which is through October. Western Europe data through -20% -20%
October.
-30% -30%

Annual Change in European Passenger Car Sales -40% -40%
2007 2008 2009 2010 2011 2012 YTD
30.0% Note: 2012 Through October
Germany
France
20.0%
Italy
United Kingdom
10.0%
Spain
Western Europe
0.0%

-10.0%

-20.0%

-30.0%
2009 2010 2011 2012YTD
Note: 2012 through November Western Europe and U.K. through
October.


Markets & Inventories Daily trading volumes of Nymex platinum futures
fell to 416,259 ounces in November from 460,122
Open interest in Nymex platinum futures fell from ounces in October.
3.06 million ounces on 31 October to a monthly low Large non-commercial Nymex market participants
of 2.98 million ounces on 20 November. Open inter- raised their net long positions in platinum futures by
est began rising thereafter, touching 3.10 million 466,400 ounces between 30 October and 27 Novem-
ounces on 3 December. ber, a 52.2% increase. Gross long positions increased
Open interest in the nearby active January contract by 21% and gross short positions decreased by 42.5%
trended lower last month, from 2.87 million ounces at during the period.
the end of October to 2.73 million ounces on 4 De-
cember, a 5.0% decrease.

Platinum Investment Demand Platinum Markets
Platinum ETF Holdings Gross Long and Short Positions of Non-Commercial Positions
Data as of 30 November 2012, Changes from 31 October Platinum Futures & Options. Weekly Data, Through 30 October 2012
'000 Ozs '000 Ozs
Month-end Holdings % ∆ Ounce ∆ 2,700 2,700
PPLT ETF S ecurities 491,581 ↓ -1.0% -5,058 2,400 2,400
2,100 Long 2,100
Platinum ZKB 353,395 ↓ 0.0% -161
1,800 1,800
Platinum Julius Baer 105,670 ↓ -0.2% -250 Net Fund Position in Nymex
1,500 1,500
PHPT ETFS 518,384 ↑ 2.1% 11,002
1,200 1,200
GLTR - ETFS 8,471 ↑ 2.7% 225 900 900
WITE - ETFS 7,319 ─ 0.0% 0 600 600
Platinum MS L 5,108 ↑ 2.7% 136 300 300
S PLT iS hares 3,279 ↓ 0.0% -1 0 0
S PPT S ource 14,677 ─ 0.0% 0 -300 -300
Japan Mitsubishi 15,882 ─ 0.0% 0 -600
Short
-600
Total 1,523,766 ↓ -1.3% -19,365 -900 -900
YTD Net Additions to Total ETF Holdings* ↑ 15.0% 198,302 -1,200 -1,200
A-95 M-97 J-99 D-01 J-04 F-06 A-08 M-10 J-12
*YTD Holdings as of 30 November 2012. Percentage change is

Platinum Exchange Traded Product Holdings
Daily, through 30 November 2012 Platinum Prices, Total Open Interest, and Nymex Inventories
Mln Oz Mln Oz $ / Oz Mln Ozs
1.8 1.8 3,000 3.5
SPPT - LSE Source
1.6 1.6
SPLT-LSE iShares 2,500 3.0
1.4 1.4
WITE-NYSE ETFS
Prices (Left scale) 2.5
1.2 1.2 2,000
GLTR-NYSE ETFS
PPLT
1.0 NYSE 1.0 2.0
Julius Baer Platinum 1,500
0.8 0.8
MSL ASX 1.5
ZKB
0.6 Platinum 0.6 1,000
Tokyo Mitsubishi 1.0
0.4 0.4
Nymex Stocks
500 0.5
0.2 PHPT LSE 0.2
Open Interest

0.0 0.0 0 0.0
20-Apr-07 20-Apr-08 20-Apr-09 20-Apr-10 20-Apr-11 20-Apr-12
D-02 F-04 A-05 J-06 S-07 N-08 J-10 M-11 M-12

Note: PHPT-ETF Securities’ platinum ETF traded on the London Stock Exchange. ZKB-Zurich
Cantonal's platinum ETF traded. PPLT-ETF Securities’ platinum ETF traded on the New York
Stock Exchange. Julius Baer’s platinum ETF traded on the Swiss Exchange. MSL-Metals Securities
Australia platinum ETF. GLTR-ETF Securities’ Precious Metals Basket ETF traded on the New
York Stock Exchange. WITE-ETF Securities’ white metals basket ETF traded on the New York
Stock Exchange. SPLT-iShares platinum ETC traded on the London Stock Exchange. SPPT-
Source’s platinum ETP traded on the London Stock Exchange. Tokyo-Mitsubishi’s Japanese
Platinum ETC.


Platinum Statistical Position

Platinum Statistical Position
Supply 2007 2008 2009 2010e 2011 2012p 2013p
Mine Production
South Africa 5,039 4,778 4,537 4,684 4,695 4,128 4,581
Russia 935 800 804 834 811 803 823
Canada 206 235 144 96 247 257 270
United States 128 119 126 113 122 118 119
Other 363 369 403 457 510 519 530
Total 6,672 6,301 6,014 6,184 6,385 5,826 6,322
% Change Year Ago -5.1% -5.6% -4.6% 2.8% 3.3% -8.8% 8.5%
Secondary Supply
Total 920 1,000 750 964 988 998 1,038
% Change Year Ago 13.6% 8.7% -25.0% 28.5% 2.5% 1.0% 4.0%
Total Supply 7,592 7,301 6,764 7,147 7,373 6,824 7,360
% Change Year Ago -3.2% -3.8% -7.4% 5.7% 3.2% -7.4% 7.9%
Fabrication Demand
Auto 4,195 3,785 2,740 3,081 3,173 3,285 3,341
Jewelry 1,772 1,698 2,283 1,926 1,946 1,974 2,038
Other 1,877 1,975 1,959 2,196 2,196 2,240 2,298
Total Demand 7,844 7,457 6,982 7,202 7,315 7,499 7,677
% Change Year Ago 0.3% -4.9% -6.4% 3.2% 1.6% 2.5% 2.4%
Net Surplus or Deficit -252 -157 -218 -55 58 -675 -316
Price Per Ounce YTD
High $1,549.30 $2,276.10 $1,506.30 $1,809.60 $1,905.70 $1,725.10
Low $1,112.00 $787.20 $922.20 $1,460.00 $1,363.40 $1,386.40
Average $1,314.46 $1,579.31 $1,214.50 $1,614.22 $1,722.39 $1,552.35
% Change Year Ago 14.6% 20.1% -23.1% 32.9% 6.7% -12.3%

*Thousand Troy Ounces; Notes: Excludes transitional economies, except as noted. Secondary production statistics exclude toll-refined material; Prices are settlement prices for the nearby
active contract on the New York Mercantile Exchange. 2012 through 6 December. Changes in market inventories are year-end. *Changes in 1997 market inventories exclude U.S. Industry
stocks since the U.S. Bureau of Mines ceased publication of U.S. Industry stock level data in the third quarter of 1997; As of 2006 Inventories includes changes in ETF holdings; There may
be discrepancies due to rounding; NA -- not available; e -- estimates; p -- projections; Sources: U.S. Bureau of Mines, Statistics Canada, trade sources, CPM Group; 6 December 2012.

World Platinum Supply and Demand Balance Platinum Quarterly Average Price Projections
Thou. Ounces $/Ounce, through Q3 2014

9,000 9,000 $2,600 $2,600
8,000 8,000
$2,200 $2,200
Total Supply
7,000 7,000
Total Demand
6,000 6,000 $1,800 $1,800

5,000 5,000 Actual
$1,400 $1,400
4,000 4,000 Projections
3,000 3,000 $1,000 $1,000

2,000 2,000
$600 $600
1,000 1,000
0 0 $200 $200
1977 1981 1985 1989 1993 1997 2001 2005 2009 2013p 1999 2002 2005 2008 2011 2014


Palladium Outlook
Palladium has price supportive mine supply fundamentals becomes a concern and investors liquidate their positions.
but the fabrication demand fundamentals could weaken Prices are unlikely to decline below these levels because
over the next few months, which could weigh on prices. of the price supportive mine supply fundamentals. On the
The illegal labor strikes at South African mines have upside prices could rise toward $725. If prices break past
been resolved, for the most part, but there are still several this level prices are could find resistance at $750. Prices
country related risks, such as poor infrastructure and gov- are likely to rise to these levels in the event that the fiscal
ernment policies that could hamper mine supply in the cliff is averted. In such a scenario, all asset prices could
future. Since none of these factors is an active issue at potentially see at least an initial increase in value.
present these problems are expected to be more price sup-
portive than factors that result in pushing higher the price
of palladium.
On the fabrication demand side, there has been strength
in demand from two of palladium’s largest uses, auto
catalysts and semiconductors. Much of the demand
growth in both of these areas has been driven by stronger
growth from the United States. Fabrication demand is
likely to be hurt in the first half of next year as the U.S. Palladium Prices
undergoes fiscal tightening. Irrespective of how U.S. Palladium Prices: 1 January 2009 to 5 December 2012
politicians handle the fiscal cliff situation, there will be a
$ / Oz
negative impact on the economy. If the fiscal cliff is 900
averted, the scenario we assign the greatest probability, 850
the negative impact of the fiscal tightening will be less 800
than if no decision is made on how to handle the situa- 750
tion, a scenario we consider to be unlikely. Additionally, 700
the U.S. auto market is beginning to show signs of an 650
increase in inventory levels for some models, despite the 600
strong growth in demand for auto in the U.S. market this
550
year. This could weigh on future palladium demand.
500
On the downside, palladium prices could potentially de- 450
cline toward $600 or even $580 if fabrication demand 400
350

Palladium Quarterly Average Price Projections to Q3 2014
$ / Ounce
Quarterly
$900 $900 Year Quarter Change Annual AVG Change
AVG
$800 $800
Actual 2012 IV $640 4.1% $642 -12.6%
$700 $700
$600 $600 2013 I $632 -1.3%

$500 $500 II $638 1.0%
$400 $400 III $625 -2.0%
Projections
$300 $300 IV $678 8.5% $643 0.2%
$200 $200 2014 I $722 6.4%
$100 $100
II $738 2.2%
$0 $0
2009 2010 2011 2012 2013 2014 III $710 -3.7%


Prices There are several structural problems with South Af-
rica’s mining industry, however, which should con-
Palladium prices rose by around 13% during Novem- tinue to threaten supply and should underpin palla-
ber. Prices settled at $686.25 on 30 November, up dium prices.
from $609.80 on 31 October. Palladium prices settled
higher on more days than it settled lower, during No- Fabrication Demand
vember. The roll of the then nearby active December
Nymex contract, coupled with an increase in invest- Monthly U.S. light-duty vehicle sales continued to
ment demand helped to drive palladium prices rise in November reaching 1.13 million, up 14.8%
higher. In November, palladium prices retraced all of from the corresponding period in 2011. For the first
the losses that it suffered between the last week of 11 months of 2012, U.S. light-duty vehicle sales to-
September and the end of October. taled 13.08 million, up 13.8% or 1.6 million vehicles
over the same period in 2011. Availability of cheap
Supply and relatively easy financing has been the primary
driver of demand during 2012. Demand in November
Strikes at South Africa’s platinum group metal mines also is said to be helped by the destruction of cars
were resolved for the most part during November. due to Superstorm Sandy. It is estimated that around

Palladium Price Volatility and Fabrication Demand

Palladium Price Volatility U.S. Vehicle Sales
Monthly, Through November 2012 Monthly Data, Through November 2012
Thousand Vehicles
100%
1,600
90% 2010 2011 2012
1,400
80%
70% 1,200
60% 1,000
50%
800
40%
30% 600

20% 400
10% 200
0%
77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 -
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Annual Percentage Change in Auto Sales Chinese Vehicle Sales
Monthly ,Through October 2012
60.0%
Thousand Vehicles
50.0%
2,000
40.0% 2010 2011 2012
1,900
30.0% 1,800
20.0% 1,700
10.0% 1,600
0.0% 1,500
-10.0% 1,400

-20.0% 1,300
Brazil Russia
-30.0%
1,200
India China
1,100
-40.0%
2009 2010 2011 2012 YTD 1,000
Source: Bloomberg. Note: 2012 data through September. Brazil through October. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec


250,000 vehicles were lost to the storm. Investment Demand
One area of concern with regard to future demand for
palladium is that there is a significant build up in the Palladium exchange traded product (ETP) holdings
inventory of certain vehicles despite the increase in rose at the beginning of November, rising to 1.91
demand. million ounces on 5 November. Holdings slipped
According to the Semiconductor Industry Associa- lower over the next few days reaching a low of 1.862
tion, global semiconductor sales in October rose to million ounces on 15 November. Holdings rose over
$25.2 billion, up 1.7% from the prior month. Year-to- the remainder of November, rising back to levels
date sales through October 2012 were down 3.7% near those seen at the beginning of the month. On 30
from the corresponding period in 2011. November, palladium ETP holdings had reached 1.89
million ounces.
Investor holdings in palladium ETPs had continued
Palladium Investment Demand to rise into the first few days of December, with hold-
ings reaching around 1.9 million ounces on 5 Decem-
Net Sales/Purchases of Palladium ETPs ber.
1,200 1,200 Markets & Inventories
1,000 1,000
Total open interest in the Nymex palladium contract
800 800 rose during November. Total open interest rose from
600 600 2.07 million ounces at the end of October to 2.3 mil-
lion ounces at the end of November. The increase in
400 400
total open interest gained momentum toward the end
200 200 of the month, rising to a high of 2.35 million ounces
0 0
on 29 November from 2.16 million ounces on 21 No-
vember. Total open interest continued to rise into the
-200 -200 first few days of December. On 3 December, total
-400 -400 open interest was at 2.36 million ounces.
Open interest in the December Nymex contract de-
-600 -600
2007 2008 2009 2010 2011 2012 YTD clined over the course of November as market par-
ticipants either rolled forward or closed out their po-
Palladium ETP Holdings sitions. Open interest in this contract slipped from
Data as of 30 November Changes from 30 October
1.89 million ounces at the beginning of November to
Month-end Holdings %∆ Ounce ∆
PALL ETF S ecurities 712,675 ↓ -5.6% -39,819
Palladium ZKB - S IX 355,276 ↓ 0.0% -161 Palladium ETP Holdings
Palladium Julius Baer 133,923 ↑ 1.0% 1,400 Through November 2012
PHPD ETF S ecurities 550,721 ↑ 6.6% 36,587 Mln Oz Mln Oz
2.5 2.5
GLTR - ETFS 12,633 ↑ 2.3% 292 Mitsubishi
WITE - ETFS 5,875 ─ 0.0% 0
SPAL
Palladium MS L - AS X 3,812 ↑ 2.8% 106 2.0 2.0
S PDM iS hares 6,348 ↓ 0.0% -2 SPDM
S PAL S ource 102,982 ↑ 1.5% 1,509 WITE
Mitsubishi 12,539 0.0% 0 1.5 PALL 1.5
─
Total 1,896,784 ↓ 0.0% -86 GLTR NYSE
YTD Net Additions to Total ETF Holdings* 191,994 1.0 Julius Baer 1.0
*As of 30 November
MSL ASX ZKB
Note: PHPD-ETF Palladium traded on the London Stock Exchange. ZKB-Zurich Cantonal's 0.5 0.5
palladium ETF traded. PALL—ETFS Palladium traded on the New York Stock Exchange . Metals
Securities Australia . Julius Baer’s palladium ETF traded on the Swiss Exchange. Precious Metals PHPD LSE
Basket ETF traded on the New York Stock Exchange. WITE-ETF Securities’ white metals basket
ETF traded on the New York Stock Exchange. SPDM-iShares’ palladium ETC traded on the 0.0 0.0
London Stock Exchange. SPAL-Source’s palladium ETC traded on the London Stock Exchange. 2007 2008 2009 2010 2011 2012
Mitsubishi is palladium ETP traded on Tokyo Stock Exchange.
Source: ETP issuer websites, Bloomberg


84,400 ounces at the end of the month. Based on the
increase in total open interest over this time it is most
likely that market participants rolled their positions
into future months. Open interest in the nearby active
March Comex contract was at 2.3 million ounces on
4 December, up from 2.2 million ounces at the end of
November.
Palladium delivered via the December Nymex con-
tract totaled 77,600 ounces as of 5 December. Nymex
registered inventories were unchanged at 531,100
ounces during the first 5 days of the December.
Net long positions held by large non-commercial
market participants rose to 1.36 million ounces on 27
November, the highest level that net long positions
have been at since August 2011. On 2 August 2011,
net long positions had reached 1.72 million ounces.
The increase in net long positions, which were at
892,900 ounces at the end of October, was driven by
a combination of an increase in gross long positions
and a decline in gross short positions. Gross long po-
sitions reached 1.61 million ounces on 27 November,
the highest level since 2 August 2011 when they
were at 1.9 million ounces. Gross shorts also declined
during November, slipping to 252,700 ounces on 27
November from 439,500 ounces at the end of Octo-
ber.

Palladium Markets

Palladium Prices, Total Open Interest, and Nymex Inventories Gross Long and Short Positions of Non-Commercial Positions
Daily, Through 5 December 2012 Nymex Palladium Futures &Options. Weekly Data, Through 27 November 2012
$ / Oz Mln Ozs '000 Ozs
'000 Ozs
900 3.0 2,000 2,000
1,800 1,800
800 1,600 Long 1,600
2.5
1,400 1,400
700 Prices (Left scale) 1,200 1,200
2.0 1,000 Net Position in Nymex 1,000
600
800 800
500 1.5 600 600
400 400
400 200 200
Open 1.0 0 0
Interest
300 -200 -200
0.5 -400 -400
200 -600 -600
Nymex Stocks Short
-800 -800
100 0.0 -1,000 -1,000
D-02 S-03 J-04M-05M-06J-07 N-07 S-08 J-09 A-10F-11 D-11O-12 A-95 S-96 M-98 A-99 O-02 M-04 A-05 J-07 J-08 D-09 M-11 O-12


Palladium Statistical Position
Supply 2007 2008 2009 2010 2011e 2012p 2013p
Mine Production
Russia 3,120 2,737 2,686 2,732 2,714 2,671 2,698
South Africa 2,630 2,447 2,443 2,616 2,638 2,348 2,612
Canada 550 513 229 250 503 539 603
United States 423 394 418 382 407 395 397
Others 539 442 550 571 615 630 632
Total 7,262 6,533 6,326 6,551 6,876 6,583 6,941
% Change Year Ago -2.0% -10.0% -3.2% 3.5% 5.0% -4.3% 5.4%
Secondary Supply
Total 1,508 1,585 1,347 1,664 1,730 1,791 1,881
% Change Year Ago 7.2% 5.1% -15.0% 23.5% 4.0% 3.5% 5.0%
Total Supply 8,770 8,118 7,673 8,214 8,607 8,374 8,822
% Change Year Ago -0.5% -7.4% -5.5% 7.1% 4.8% -2.7% 5.4%
Fabrication Demand
Electronics 1,200 1,125 1,095 1,179 1,207 1,243 1,284
Automotive 4,545 4,252 3,960 4,656 4,919 5,338 5,688
Dental 776 775 782 784 782 783 779
Other 1,241 1,285 1,206 1,152 1,137 1,133 1,178
Total Demand 7,762 7,437 7,043 7,771 8,045 8,497 8,929
% Change Year Ago 2.1% -4.2% -5.3% 10.3% 3.5% 5.6% 5.1%
Net Surplus or Deficit 1,007 681 631 444 561 -123 -108
Price Per Ounce YTD
High $389.50 $600.00 $410.00 $804.90 $857.70 $719.75
Low $315.20 $160.30 $176.10 $380.05 $564.15 $561.60
Average $358.28 $352.98 $266.75 $529.11 $733.85 $640.31
% Change Year Ago 10.8% -1.5% -24.4% 98.4% 38.7% -13.5%
*Thousand Troy Ounces; Notes: Excludes transitional economies, except as noted. Secondary production statistics exclude toll-refined material. Prices are settlement prices for the active

World Palladium Supply and Demand Balance Palladium Quarterly Average Price Projections
Thou. Ounces $/Ounce, through Q3 2014
10,000 10,000

9,000 9,000 $1,100 $1,100
Total Supply $1,000 $1,000
8,000 8,000
Total Demand $900 $900
7,000 7,000
$800 $800
6,000 6,000
$700 Actual $700
5,000 5,000
$600 $600
4,000 4,000 $500 P $500
r
o
3,000 3,000 $400 j
e $400
c
t
i
o
2,000 2,000 $300 n
s
$300
$200 $200
1,000 1,000
$100 $100
0 0 1999 2002 2005 2008 2011 2014
1976 1981 1986 1991 1996 2001 2006 2011e


Rhodium
The Price of Rhodium Rhodium Supply and Demand
Monthly Average NY Dealer Price, Through November 2012
$/Oz $/Oz
1,400 1,400
$10,000 $10,000
$9,000 $9,000 1,200 1,200
Demand
$8,000 $8,000
1,000 1,000
$7,000 $7,000
$6,000 $6,000 800 800
$5,000 $5,000 Supply
600 600
$4,000 $4,000
$3,000 $3,000 400 400
$2,000 $2,000
200 200
$1,000 $1,000
$0 $0 0 0
72 75 78 81 84 87 90 93 96 99 02 05 08 11 1976 1981 1986 1991 1996 2001 2006 2011

Rhodium Quarterly Average Price Projections to Q3 2014
$ / Ounce
Quarterly
Year Quarter Change Annual AVG Change
$3,000 $3,000 AVG

$2,500 $2,500 2012 IV $1,145 -2.0% $1,276 -25.9%
Projections 2013 I $1,120 -2.2%
$2,000 $2,000
II $1,193 6.5%
Actual
$1,500 $1,500
III $1,300 9.0%

$1,000 $1,000 IV $1,404 8.0% $1,254 -1.7%
2014 I $1,460 4.0%
$500 $500
II $1,387 -5.0%
$0 $0 III $1,360 -2.0%
2009 2010 2011 2012 2013 2014

Rhodium Exchange Traded Product Holdings
Ounces Ounces
60,000 60,000

50,000 50,000

40,000 40,000

30,000 30,000

20,000 20,000

10,000 10,000

0 0
May-11 Sep-11 Jan-12 May-12 Sep-12
Note: Metal is stored in the United Kingdom and is the combined holdings of the
ETC's two primary listings, the db Physical Rhodium ETC (EUR) traded on the
Xetra and Borse Italiano and the db Physical Rhodium ETC traded on the LSE.
Source: db, Bloomberg


Precious Metal Price Table
Gold Silver Platinum Palladium Rhodium
Yr Q Quarterly Quarterly Quarterly Quarterly Quarterly
% % % % %
Price Change Price Change Price Change Price Change Price Change

2003 I $353 8.8% $4.67 3.1% $654 11.8% $245 -13.6% $608 -11.4%
II $348 -1.4% $4.60 -1.5% $640 -2.1% $171 -30.1% $509 -16.4%
III $364 4.7% $5.02 9.1% $693 8.3% $193 12.8% $497 -2.4%
IV $393 8.0% $5.30 5.5% $766 10.5% $203 5.0% $476 -4.2%

2004 I $409 4.1% $6.72 26.8% $864 12.9% $245 20.6% $598 25.7%
II $394 -3.8% $6.26 -6.8% $830 -4.0% $259 5.9% $773 29.2%
III $403 2.3% $6.51 4.0% $837 0.8% $218 -16.1% $1,030 33.3%
IV $435 8.1% $7.27 11.8% $850 1.6% $210 -3.5% $1,210 17.5%

2005 I $428 -1.6% $7.00 -3.7% $865 1.8% $191 -9.0% $1,448 19.7%
II $429 0.2% $7.17 2.4% $873 0.9% $193 0.9% $1,567 8.2%
III $441 2.8% $7.10 -1.0% $899 3.0% $189 -1.8% $2,058 31.3%
IV $487 10.5% $8.11 14.2% $962 6.9% $243 28.6% $2,795 35.8%

2006 I $556 14.3% $9.74 20.1% $1,042 8.4% $295 21.2% $3,355 20.0%
II $630 13.2% $12.26 25.9% $1,189 14.0% $350 18.6% $4,655 38.7%
III $623 -1.2% $11.72 -4.5% $1,223 2.9% $326 -6.7% $4,531 -2.7%
IV $608 -2.3% $12.68 8.2% $1,130 -7.6% $325 -0.5% $4,896 8.1%

2007 I $652 7.2% $13.36 5.4% $1,198 6.0% $347 6.9% $5,762 17.7%
II $671 2.8% $13.37 0.1% $1,298 8.4% $372 7.1% $5,990 4.0%
III $684 2.0% $12.80 -4.3% $1,301 0.2% $352 -5.5% $6,006 0.3%
IV $794 16.0% $14.33 12.0% $1,457 12.0% $365 3.9% $6,463 7.6%

2008 I $928 17.0% $11.79 -17.8% $1,889 29.6% $451 23.5% $8,069 24.9%
II $898 -3.2% $17.20 45.9% $2,037 7.9% $449 -0.5% $9,275 14.9%
III $870 -3.2% $14.97 -13.0% $1,532 -24.8% $328 -27.0% $6,277 -32.3%
IV $795 -8.6% $10.18 -32.0% $871 -43.2% $192 -41.4% $1,424 -77.3%

2009 I $910 14.5% $12.64 24.1% $1,030 18.3% $201 4.4% $1,060 -25.6%
II $924 1.5% $13.75 8.9% $1,179 14.4% $236 17.6% $1,283 21.0%
III $962 4.1% $14.77 0.4% $1,239 5.2% $276 16.8% $1,523 18.7%
IV $1,101 14.4% $17.58 19.0% $1,400 13.0% $351 27.5% $2,045 34.3%

2010 I $1,110 0.9% $16.92 -3.7% $1,562 11.6% $441 25.4% $2,440 19.3%
II $1,197 7.9% $18.36 8.5% $1,634 4.6% $496 12.5% $2,592 6.2%
III $1,228 2.5% $19.00 3.5% $1,556 -4.8% $496 0.1% $2,204 -15.0%
IV $1,369 11.5% $25.59 34.7% $1,701 9.3% $679 36.8% $2,329 5.7%

2011 I $1,386 1.2% $31.74 24.0% $1,797 5.6% $793 16.8% $2,436 4.6%
II $1,507 8.7% $38.42 21.1% $1,788 -0.5% $761 -4.0% $2,179 -10.6%
III $1,700 12.8% $38.86 1.1% $1,774 -0.7% $755 -0.8% $1,894 -13.1%
IV $1,686 -0.8% $31.84 -18.0% $1,534 -13.5% $631 -16.3% $1,588 -16.1%

2012p I $1,693 0.4% $32.72 2.8% $1,613 5.1% $685 8.5% $1,462 -8.0%
II $1,622 -4.2% $29.47 -10.0% $1,503 -6.9% $629 -8.1% $1,328 -9.2%
III $1,657 2.1% $30.08 2.1% $1,505 0.2% $615 -2.3% $1,168 -12.0%
IV $1,726 4.2% $32.99 9.7% $1,604 6.5% $640 4.1% $1,145 -2.0%
2013p I $1,718 -0.4% $33.28 0.9% $1,615 0.7% $632 -1.3% $1,120 -2.2%
II $1,667 -3.0% $30.62 -8.0% $1,567 -3.0% $638 1.0% $1,193 6.5%
III $1,608 -3.5% $29.40 -4.0% $1,527 -2.5% $625 -2.0% $1,300 9.0%
IV $1,641 2.0% $30.28 3.0% $1,634 7.0% $678 8.5% $1,404 8.0%
2014p I $1,673 2.0% $31.49 4.0% $1,693 3.6% $722 6.4% $1,460 4.0%
II $1,623 -3.0% $31.17 -1.0% $1,719 1.5% $738 2.2% $1,387 -5.0%
III $1,599 -1.5% $29.30 -6.0% $1,658 -3.5% $710 -3.7% $1,360 -2.0%


Precious Metals Equities
Financial Performance One Month One Year
Price 52 Week Range P/E Dividend Yield %
December 6, 2012 % Change % Change

South African Gold Finance Houses US$
AngloGold Ashanti 30.29 -9.1% -34.1% 380.20/251.99 11.43 0.22 0.5%
Gold Fields 11.47 -7.4% -30.7% 139.13/95.51 9.41 0.21 1.4%
Harmony Gold Mining Co. Ltd. 7.51 -4.7% -45.5% 115.95/64.10 13.70 0.07 0.5%
Randgold & Exploration Co. 102.77 -13.4% -1.7% 78.92/44.80 22.35 0.20 0.2%

North American Gold Mining Companies US$
Agnico-Eagle 53.06 -3.4% 22.0% 57.35/31.42 NM 0.64 1.0%
Barrick Gold 33.43 -6.0% -34.7% 51.81/31.00 0.00 0.48 1.0%
Goldcorp 36.82 -16.5% -29.3% 52.55/31.54 19.59 0.41 0.8%
Kinross Gold 9.63 2.9% -30.4% 13.98/7.11 0.00 0.10 0.6%
Yamana Gold 17.73 -9.9% 8.7% 20.61/12.76 37.13 0.18 1.4%

International Multi-Metal Companies US$
BHP 36.12 -0.5% -3.8% 38.25/30.09 12.21 0.92 1.9%
Rio Tinto PLC 52.02 2.2% -0.4% 40.29/26.48 23.11 1.26 1.8%

Australian Gold Mining Companies US$
Newcrest Mining Ltd. 25.30 -7.1% -27.2% 36.10/20.89 16.53 0.27 0.7%

Silver Mining Companies US$
Coeur d'Alene Mines Corp. 22.06 -8.5% -23.6% 31.97/15.15 91.84 0.00 0.0%
Compania de Minas Buenaventura S.A. 33.09 -5.3% -12.9% 43.90/30.86 10.88 0.49 1.3%
Industrias Peñoles S.A. de C.V. 49.70 -0.6% 8.2% 694.50/504.05 29.27 1.58 4.2%
Pan American Silver Corp. 18.08 -15.8% -26.4% 26.78/13.79 11.13 0.10 0.3%
Silver Standard Resources Inc. 13.58 -7.0% -5.2% 18.14/10.18 33.31 0.00 0.0%

Platinum Mining Companies US$
Adriana Resources 0.38 -17.2% -59.6% 1.38/0.38 NM 0.00 0.0%
Anglo American Platinum Corp. 47.70 3.5% -30.3% 598.50/358.74 NM 1.01 1.1%
Aquarius Platinum (A$) 0.68 -0.9% -76.2% 2.88/0.48 NM 0.08 1.6%
Eurasia Mining plc. (£) 0.01 0.6% -26.3% 0.01/0.00 NM 0.00 0.0%
Jubilee Platinum (£) 0.12 -7.2% -43.2% 0.18/0.07 NM 0.00 0.0%
Impala Platinum 17.51 -3.0% -18.0% 180.83/123.47 22.06 0.62 2.3%
North American Palladium 1.41 -7.5% -56.2% 3.34/1.28 NM 0.00 0.0%
Pacific North West Capital (C$) 0.05 -8.7% -57.4% 0.17/0.05 NM 0.00 0.0%
Stillwater Mining Company 11.29 3.5% -2.9% 15.24/7.47 22.47 0.00 0.0%
Trend Mining Company 0.00 0.0% -66.7% 0.01/0.00 NM 0.00 0.0%
Zimplats (A$) 8.61 1.3% -24.8% 12.00/7.50 7.38 0.00 0.0%

Notes: NM-Not Meaningful. NE-No earnings; Source Capital IQ, Bloomberg.


Market Metrics

Metals Markets Indices
November O ctober November '11 % ?1-Year November O ctober November '11 % ?1-Year
Gold $1,721.82 $1,746.08 $1,745.50 -1.4% Nasdaq 3,010 2,977 2,620 14.9%
Silver $33.20 $32.32 $32.41 2.5% DJIA 13,026 13,096 12,046 8.1%
Platinum $1,604.60 $1,577.00 $1,560.80 2.8% S&P 510 1,416 1,412 1,247 13.6%
Palladium $686.25 $609.80 $610.00 12.5% FT World Stock 383 379 345 10.9%
Rhodium $1,125.00 $1,125.00 $1,625.00 -30.8% U.S. T -bills 0.08% 0.11% 0.02% 400.0%
Iridium $1,050.00 $1,050.00 $1,085.00 -3.2% U.S. 10 Yr Notes 1.62% 1.69% 2.07% -21.9%
Ruthenium $90.00 $110.00 $120.00 -25.0% $-Euro Interest Rate -0.12% -0.09% -1.46% -92.0%
Osmium $350.00 $350.00 $350.00 0.0% Differential
CRB Commodity Index 299.0 295.8 313.8 -4.7%
Economist Commodity*
Currencies Dollar Index 187.2 187.5 178.2 5.1%
November O ctober November '11 % ?1-Year Euro Index 180.0 179.6 166.2 8.3%
$/Euro 1.30 1.30 1.35 -3.7% FT Gold Mines Index 2,919 3,211 3,898 -25.1%
Japanese Yen/$ 82.48 79.77 77.60 2.8% XAU Gold & Silver Equity 170.2 188.3 208.3 -18.3%
$/British Pound 1.60 1.61 1.57 2.69% T remont Man. Futures
U.S. T W$ N/A 98.96 99.52 -0.6% Account Index, Return -0.1% -2.3% 0.52% N/A
Oil (Nymex CL) $88.91 $92.19 $100.36 -11.4%
*Base year was adjusted to 2005 from 2000

Real GDP Consumer Prices Interest Rates Money Supply Monetary Reserves ($BN) Industrial Prod.
2012 2011 2012 2011 2012 2012 2012 2011 2012
3Q 3Q O ctober O ctober Latest Latest March March Latest
United States 2.7% 1.3% 0.1% 0.0% 0.10% 13.1% $51.1 $54.2 1.7%
Eurozone -0.1% 0.1% 0.2% 0.4% -0.02% 6.0% $208.1 $210.7 -2.3%
United Kingdom 1.0% 0.6% 0.5% 0.1% 0.35% 4.3% $58.7 $57.0 0.0%
Japan -0.9% 2.3% 0.0% 0.1% 0.00% 3.2% $1,211.0 $1,058.1 -1.5%

China 7.7% 9.5% -0.1% 0.1% 6.00% 6.1% $3,305.0 $3,145.8 10.0%
India 5.3% 6.7% 9.6% 9.4% 8.00% 8.1% $260.1 $282.0 -0.4%

Notes: Gold, silver, platinum, palladium, and copper nearby active Comex or Nymex. Minor PGMs are Metals Week dealer prices; Interest rates are 3-month money market rates for the
U.S., Euro,U.K.,and Japan; Interest rates are one-year rates for China & India; $-Euro interest rate differential is the spread between rates available on the 90-day government notes of
each; Money supply is percent change from previous year; Money supply is M1, UK is M0; Monetary reserves excluding gold; NA - Not Available.

Cpm precious metals advisory 2012 12-06

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Cpm precious metals advisory 2012 12-06