Tag: platinum group metals

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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Why Palladium Is on a Tear

Why Palladium Is on a Tear

Physical palladium and rhodium markets are buzzing. Reported prices for both metals leapt higher in recent days. The story behind palladium’s move is that a physical shortage has developed in London. Traders sold metal they didn’t physically possess. Now they are being asked to deliver the bars and they are scrambling to secure the metal needed, bidding prices higher. It looks like bullion bankers selling paper metal are finally getting called for selling way more than they can actually deliver! People have complained about this practice in precious metals markets for decades. More and more contracts have been sold, but inventories of actual physical metal have not kept pace. Price discovery is […]

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