Why Metals are Diverging

[JohnQPublic]

Silver down; Palladium up; Next year, gold?

Platinum, Palladium Price Fixings Make Way for Electronic System (http://www.bloomberg.com/news/2014-11-28/platinum-palladium-price-fixings-make-way-for-electronic-system.html)

Nov 28, 2014

Platinum and palladium prices will be set by phone for the last time today.


The London Metal Exchange will start a new electronic procedure next week that can viewed online. The twice-a-day system replaces one that’s been in place since 1989 where BASF Metals Ltd., Goldman Sachs Group Inc., HSBC Holdings Plc and Standard Bank Plc discuss client orders and market demand to agree on a price.


The overhaul follows silver, the first precious metal to ditch the century-old daily fixing procedure in August. The gold fix will also be replaced early next year. Scrutiny has increased on how benchmarks are set, and a jeweler sued the four platinum and palladium fixing members in New York (http://topics.bloomberg.com/new-york/) this week over claims they conspired to manipulate prices...

[JohnQPublic]

Gold could rise in January once unfettered. In the short term it could also drop substantially, like silver has.

I wonder if gold (and the other PMs) is rising on anticipation of this new mechanism (i.e. switching from corrupt banker set prices to actual price discovery)?

[JohnQPublic]

No thoughts on this? Sounds like all metals are going off fix schemes by January. This may explain why silver is dropping, gold and palladium hold steady, and palladium is heading higher, i.e., something more like real price discovery could be occurring. Of course the LBMA is in charge of operating the platform...

[JohnQPublic]

http://www.metal.com/newscontent/67575_lme-launches-lbma-platinum-palladium-prices

"LMEbullion provides a fully automated price-discovery process, holding two daily auctions at 9.45am and 2pm. Authorised traders participate through a secure web interface, where they can view the auction price and each submit their interest until a final price is set."

[Cebu_4_2]

No thoughts on this?

Seems you pretty much have it covered.

[Neuro]

Silver down; Palladium up; Next year, gold?

Platinum, Palladium Price Fixings Make Way for Electronic System (http://www.bloomberg.com/news/2014-11-28/platinum-palladium-price-fixings-make-way-for-electronic-system.html)

Nov 28, 2014

Platinum and palladium prices will be set by phone for the last time today.


The London Metal Exchange will start a new electronic procedure next week that can viewed online. The twice-a-day system replaces one that’s been in place since 1989 where BASF Metals Ltd., Goldman Sachs Group Inc., HSBC Holdings Plc and Standard Bank Plc discuss client orders and market demand to agree on a price.


The overhaul follows silver, the first precious metal to ditch the century-old daily fixing procedure in August. The gold fix will also be replaced early next year. Scrutiny has increased on how benchmarks are set, and a jew sued the four platinum and palladium fixing members in New York (http://topics.bloomberg.com/new-york/) this week over claims they conspired to manipulate prices...
Fixed it for you! A goy wouldn't have legs in a case like this.