Tag: bank run

THIS Is What a Run on the Bank for Precious Metals Looks Like…

THIS Is What a Run on the Bank for Precious Metals Looks Like…

The explosive price action seen in palladium recently is indicative of a physical shortage. Put simply, available inventories are failing to keep up with demand (largely from the automotive industry). According to Refnitiv GFMS, the palladium market will be under-supplied by 883,000 ounces this year. Stresses on the physical market are showing up in spiking lease rates, illiquidity, widening bid/ask spreads, and disconnections between quoted spot prices and actual physical prices. Most importantly, the deficit in palladium supply is manifesting in the form of rising prices. Palladium hit a record, briefly touching the $2,500 level last month. And despite selling off a little in recent days, Bank of America Securities […]

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