By Claudia Carpenter April 13 (Bloomberg) -- Platinum and palladium prices will rise faster than “yesterday’s jewelry” gold as consumers in China seek more novel precious metals and demand from industry grows, according to Credit Agricole Corporate & Investment Bank. “They want the latest fad,” Robin Bhar, a commodities analyst at Credit Agricole, said in London today. “They like gold but one could almost argue gold is yesterday’s jewelry.” China, the biggest auto market, also needs palladium and platinum for catalysts to curb exhaust fumes. Platinum prices are up 17 percent this year and palladium 25 percent while gold rose 4.7 percent. Imports to China will contribute to a global platinum deficit of 386,000 ounces in 2010, following a surplus last year, while palladium’s surplus will narrow, Bhar said. “These two metals will outperform gold, possibly silver, going forward as economic recovery strengthens,” he said. Platinum will average $1,650 an ounce in 2010 and $1,750 an ounce next year, while palladium will average $500 an ounce this year and $576 an ounce in 2011, according to Credit Agricole. Platinum traded at $1,707.47 an ounce at 10:20 a.m. in London, while palladium was at $510 an ounce. To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net

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