Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
8 Stock Market Indicators in 1: Here's the Message of the Panic/Euphoria Model - 19th Apr 21
Gold - You Can Win a Battle, but Still Lose the War - 19th Apr 21
Will Interest Rates Rally Further Push Gold Price Down? - 19th Apr 21
Gold Fireworks Doubt the Official Inflation Story - 19th Apr 21
YuanPay Team Discuss The Process Of Crypto Diversification - 19th Apr 21
Central Banks May Ramp Up Gold Buying - 18th Apr 21
How to Get Rid of Driveway Weeds With Just WATER! 6 Months later NO Weeds, Ultimate Killer! - 18th Apr 21
State of the European Markets - DAX, FTSE, CAC, AEX, SMI, IBEX 35, S&P/MIB, Euro Stoxx 50, RTS - 18th Apr 21
Einvestment Fund: What You Need To Know About Investments - 18th Apr 21
Google Alphabet (GOOG) AI Deep Mind Stock Trend Analysis - 17th Apr 21
Stocks and Bonds Inflationary Slingshot - 17th Apr 21
Best Smartphone Selfie Stick Tripod Review by ATUMTEK Works with Samsung Galaxy and Iphone - 17th Apr 21
How to Give Budgie's First Bath | Easy Budgie Bathing and Water Training with Lettuce - 17th Apr 21
Record-breaking Decrease in New Passenger Vehicle Sale in Europe - 17th Apr 21
US Stocks Climb A “Wall Of Worry” To New Highs - 16th Apr 21
Gold’s Singular Role - 16th Apr 21
See what Anatomy of a Bursting Market Bubble looks like - 16th Apr 21
Many Stock Market Sectors Are Primed For Another Breakout Rally – Are You? - 16th Apr 21
What Skyrocketing US Home Prices Say About Inflation - 16th Apr 21
Still a Bullish Fever in Stocks? - 16th Apr 21
Trying to Buy Coinbase Stock on IPO Day - Institutional Investors Freeze out Retail Investors - 15th Apr 21
Stocks or Gold – Which Is in the Catbird Seat? - 15th Apr 21
Time For A Stock Market Melt-Up - 15th Apr 21
Stocks Bull Market Progression Now Shows Base Metal Strength - 15th Apr 21
AI Tech Stocks Buy Ratings, Levels and Valuations - 14th Apr 21
Easy 10% to 15% Overclock for 5600x, 5900x, 5950x Using AMD Ryzen Master Precision Boost Overdrive - 14th Apr 21
The Current Cannabis Sector Rally Is Pointing To Another Breakout - 14th Apr 21
U.S. Dollar Junk Bond Market The Easiest Money in History - 14th Apr 21
The SPY Is Nearing Resistance @ $410… What Is Next? - 14th Apr 21
The Curious Stock Market Staircase Rally - 14th Apr 21
Stocks are Heating Up - 14th Apr 21
Two Methods in Calculating For R&D Tax Credits - 14th Apr 21
Stock Market Minor Correction Due - 13th Apr 21
How to Feed Budgies Cucumbers - Best Vegetables Feeding for the First Time, Parakeet Care UK - 13th Apr 21
Biggest Inflation Threat in 40 Years Looms over Markets - 13th Apr 21
How to Get Rich with the Pareto Distribution - Tesco Example - 13th Apr 21
Litecoin and Bitcoin-Which Is Better? - 13th Apr 21
The Major Advantages Of Getting Your PhD Online - 12th Apr 21
Covid-19 Pandemic Current State for UK, US, Europe, Brazil Vaccinations vs Lockdown's Third Wave - 12th Apr 21
Why These Stock Market Indicators Should Grab Your Full Attention - 12th Apr 21
Rising Debt Means a Weaker US Dollar - 12th Apr 21
Another Gold Stocks Upleg - 12th Apr 21
AMD The ZEN Tech Stock - 12th Apr 21
Overclockers UK Build Quality - Why Glue Fan to CPU Heat sink Instead of Using Supplied Clips? - 12th Apr 21 -
What are the Key Capabilities You Should Look for in Fleet Management Software? - 12th Apr 21
What Is Bitcoin Gold? - 12th Apr 21
UK Covd-19 FREE Lateral Flow Self Testing Kits How Use for the First Time at Home - 10th Apr 21
NVIDIA Stock ARMED and Dangeorus! - 10th Apr 21
The History of Bitcoin Hard Forks - 10th Apr 21
Gold Mining Stocks: A House Built on Shaky Ground - 9th Apr 21
Stock Market On the Verge of a Pullback - 9th Apr 21
What Is Bitcoin Unlimited? - 9th Apr 21
Most Money Managers Gamble With Your Money - 9th Apr 21
Top 5 Evolving Trends For Mobile Casinos - 9th Apr 21
Top 5 AI Tech Stocks Investing 2021 Analysis - 8th Apr 21
Dow Stock Market Trend Forecast 2021 - Crash or Continuing Bull Run? - 8th Apr 21
Don’t Be Fooled by the Stock Market Rally - 8th Apr 21
Gold and Latin: Twin Pillars of Western Rejuvenation - 8th Apr 21
Stronger US Dollar Reacts To Global Market Concerns – Which ETFs Will Benefit? Part II - 8th Apr 21
You're invited: Spot the Next BIG Move in Oil, Gas, Energy ETFs - 8th Apr 21
Ladies and Gentlemen, Mr US Dollar is Back - 8th Apr 21
Stock Market New S&P 500 Highs or Metals Rising? - 8th Apr 21
Microsoft AI Azure Cloud Computing Driving Tech Giant Profits - 7th Apr 21
Amazon Tech Stock PRIMEDAY SALE- 7th Apr 21
The US has Metals Problem - Lithium, Graphite, Copper, Nickel Supplies - 7th Apr 21
Yes, the Fed Will Cover Biden’s $4 Trillion Deficit - 7th Apr 21
S&P 500 Fireworks and Gold Going Stronger - 7th Apr 21
Stock Market Perceived Vs. Actual Risks: The Key To Success - 7th Apr 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Platinum and Palladium- A Tale of Two Metals

Commodities / Palladium Mar 28, 2008 - 09:37 AM GMT

By: Brett_Tudor

Commodities While all the attention has been on gold this year, the recent spikes in these precious metals has been overlooked, so let's look at the long term viability of these PGMs in more detail.


Visit your local jewellery store today and it is highly likely you will find an abundance of Palladium on display. Palladium is being heavily pushed by jewellers struggling to sell more expensive items produced from gold or platinum. Virtually unheard of on the high street prior to 2007, palladium is rapidly becoming the precious metal of choice for those seeking a bargain. The average price of a ring for example is less than half the equivalent in white gold and a quarter of the price of the equivalent ring made from platinum as I discovered recently.

As a result of low prices and its naturally white properties, similar to both white gold (palladium is used to produce this alloy) and platinum, Palladium is becoming popular as a poor man's alternative. The metal is lighter than platinum, therefore it is more comfortable to wear, however its relative cheapness betrays the fact that like platinum it is several times rarer than gold. Platinum and palladium are also found together in the same ores. This is not the only similarity between the two metals, like platinum, palladium can be used in catalytic converters and electronic components therefore demand is strong in these industry sectors.

The interesting thing about platinum and palladium is that both of them are rising in price with the former reaching record levels this year. The reasons for this lie in global production and more specifically in South Africa and Russia and to a lesser extent, the current weakness of the US dollar. South Africa and Russia are the two primary producers of both these precious metals by some distance and stock levels are directly affected by supply issues in these two countries.

The key drivers of the recent spike primarily in platinum and palladium has resulted from Russia holding on to its stocks and the unpredictable supply of electricity to South African mines.

Platinum is hovering at around $2000/ oz and ounce which puts the current gold spike into perspective! while palladium surged 46% in just one month this year reaching a high of $568/oz before falling back slightly.

So do these metals offer a safe haven for investors?

In order to be a safe haven if one exists (just take a look at the long term performance gold that other precious metal regarded as a safe haven) a home for your cash needs to provide stability in the longer term. It is a fundamental fact that most, if not all commodities will rise with a weak dollar as investors hedge against its weakness. The US dollar is weak therefore it is no coincidence that money is pouring into precious metals yet in the long term it is unlikely that prices will be sustained at current levels when the dollar recovers.

So is this current surge in platinum and palladium underpinned by a weak dollar?

Well this may be true to a certain extent, but if you look at the long term trends of PGMs compared to gold there is a greater tendency for price levels to surge in PGMs and this is as a direct consequence of the level of supply. Production over the years has played a much bigger role in the value of PGMs than gold.

While the market for PGMs is less speculative than gold there are signs that investor interest is growing amongst a small number of hedge funds. However, in the long term price levels are far too volatile for all but the most serious investors prepared to watch the market carefully.

The price of these metals like gold is likely to fall as the US dollar recovers though not as dramatically. The immediate future of these precious metals is heavily reliant on Eskom , South Africa 's state run power company and whether or not they will deliver the consistently high level of power required to mine the metals. With every increase in the level of power to the mines, the price of platinum and to a lesser extent palladium plummets.

By Brett Tudor

http://www.goldpricecrash.com/

Gold Price and Global Economy Tracker - Goldpricecrash is an interactive community that not only tracks the price of gold but also other commodities and examines implications for the wider globaleconomy. Goldpricecrash provides an alternative to mainstream media reporting of events in the global commodities markets.This website has been created at the height of the bull run on gold, but like the yellow metal this isn't just a flash in the pan. Bookmark this site and join our newsletter to keep abreast of the latest news.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules