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Gold $1787, Palladium $1635 - Update, Gold $1815, Palladium $1314
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Big drop in palladium the past few days, anyone know why?
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Overdate
Posts: 6,937 ✭✭✭✭✭
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I'm not sure. Some of it is due to dollar strength. But it may have more to do with big slump in November China automobile sales that was reported last week. Even look at the US automobile situation (Carvana as an example). Rising interest rates are hurting sales even as prices fell on used cars. Also, with the Pd/Pt price differential and the Russia/Ukraine situation, manufacturers are likely gradually switching over to catalytic converter designs that use more Pt and less Pd. That is why, despite all the supply chain issues in automotive industry, Pt is kind of hanging in there (best PM performer over the past 6 months).
Lately I have seen an increase in theft reports of the catalytic converters.... Going to need to do something to curtail that activity. Cheers, RickO
Not sure about palladium's price volatility but the dip is the place to buy. And the gold... it's to hold. Seems cheap at $1787 when the Mint sells it for $2760.
It seems to keep spreading apart:
Gold: 1815
Palladium: 1600
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I bought my first (and only) ounce of palladium in the 1990’s for $150. I stretched because it was a palladium Panda in a cool wooden box, spot was $125. I sold it at Harlan Berks first time it hit $1000 long time ago. There was no way I was getting roped into the latest run up.
The long-term demand (auto) variable for both palladium and platinum scares me. Also, if Putin is ever removed you will have stockpiles from Russia hitting the open market.
Remember, palladium was $175/oz. in the 1990's (1/2 the price of gold) and that's with auto demand ripping.
Gold $1865.
Palladium $1464.
Spread $401.
For some reason, Palladium Eagles still seem to be selling for well over $2000 each.
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https://www.roadandtrack.com/news/a42844424/someone-stole-a-wienermobiles-catalytic-converter/
Dog gone!
I think it's just inertia. I expect gold to sell for 2x the price of palladium in the next few years. I believe the premium on Palladium Eagles will collapse like the early premiums on SSCA gold stuff.
Gold $1815.
Palladium $1314.
Spread now $501.
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Wow, it moved $100 in 2 weeks ?
I believe it will be over $1,000 in a few years.
The spread continues to grow. Gold at $2020 and Palladium at $951. At current prices the $2000 Palladium Eagle has passed the 100% premium point. The bottom has dropped out of Palladium. Spread in spot is now $1070.
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It might fall even further to $700-800. No reason why Pd needs to cost more than Pt. Pt has hung around $900-$1000 over the past year. The fed needs to wait for recession to even begin to think about rate cuts New car sales will fall a lot between now and then.. Not particularly good for any of the PT group metals.