Oil is going to 200$, less people will be buying new cars, less Pd demand.SHTF is around the corner and clean air won`t be a priority.
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Oil is going to 200$, less people will be buying new cars, less Pd demand.SHTF is around the corner and clean air won`t be a priority.
Yes $200 oil would dampen the demand for new cars.Quote:
Originally Posted by Antonio
atricle on platinum and palladium:
is here
Following that article, there was a very interesting comment, regarding how Norilsk nickel is changing how it is extracting nickel from the ore of which Palladium is a byproduct. Apparently the new process involves fine grinding the ore, to extract close to 100% of the nickel, compared to previously 70%, however this means that very little palladium will be extracted, and right now the Norilsk mine account for around 40% of worlds Pd supply at around 2.2-2.3 million oz. The author Mark Anthony believes Norilsk will only get out around 1 million oz of Pd, with the new process in place, a major reason for the new process being implemented is also environmental concerns. Sorry, I couldn't copy his response, but I recommend anyone to go in and read the article and the responses!Quote:
Originally Posted by G2Rad
Yes it has consolidated now for 5 months or so.... If it closes well above around $770-780 I think the wedge pattern that it has formed is broken, and from a purely technical standpoint it could very well, soon be up to a thousand or more, however it should break out of the wedge soon, otherwise its 3 year parabolic pattern is soon to be broken, and we should see a big fall...Quote:
Originally Posted by Neuro
Looks good today. We could very soon see $1000+ Pd!
Back above 800. ;D
YES! 1000 Palladium is coming soon! ;DQuote:
Originally Posted by osoab
http://www.kitco.com/reports/KitcoNe...0110609_b.html
Market Nuggets: Nymex Palladium Options Volume Sets Record High
09 June 2011, 2:47 p.m.
By Kitco News
http://www.kitco.com/
(Kitco News) -- Nymex palladium options hit a daily volume record of 2,278 contracts Wednesday, reports CME Group, operator of the exchange. The tally surpassed the previous record of 2,000 contracts set on Nov. 8, 2010.
By Allen Sykora of Kitco News; asykora@kitco.com
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Market Nuggets: Standard Targets $950 Palladium On Basis Of Palladium-Adjusted Auto Sales
09 June 2011, 9:54 a.m.
By Kitco News
http://www.kitco.com/
(Kitco News) -- Standard Bank still targets $950 for palladium based on expectations for palladium-adjusted auto sales. The bank notes that auto sales alone do not totally reflect palladium demand. “To correct for the skewed usage of palladium in different auto markets, we weight auto sales per region by the amount of palladium consumed in auto catalytic converters in the specific market,” Standard says. The bank says 2010 palladium-adjusted auto sales were low but improved, while 2011 sales are matching 2010. Further, a seasonal pick-up is expected toward year-end. “We believe that our palladium-adjusted auto sales numbers in 2011 should get close to 2007 levels, driven largely by sales growth in China,” Standard says. The bank concludes: “One of the main driving forces behind the palladium-adjusted auto sales being better than platinum-adjusted auto sales is that China consumes more palladium for auto use. We still target $950 for palladium, and believe that the fundamental floor is at $700.”
By Allen Sykora of Kitco News; asykora@kitco.com
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Market Nuggets: HSBC: Calls For South Africa Nationalization Could Affect Mine Investment
09 June 2011, 7:57 a.m.
By Kitco News
http://www.kitco.com/
(Kitco News) -- Calls for nationalization of mines in South Africa could offer support for gold and platinum group metals, even though government policy so far is not to nationalize mines, HSBC says. Analysts note that the leader of the African National Congress’ Youth League has reiterated his view that mines should be nationalized. Also, a film in favor of nationalization, "Mining for Change: A Story of South African Mining," is showing at the Encounters South African International Documentary Film Festival in Johannesburg and Cape Town. HSBC notes that the ANC previously abandoned a policy of nationalization under Nelson Mandela’s administration in the early 1990s, although a black empowerment program calls for 26% of the mining sector to be black-owned by 2014. “Even though senior ANC officials have rejected nationalization, repeated calls from the youth wing and more radical elements of the party may be enough to deter investment in the mining sectors, thereby reducing gold and PGM output to below levels that would otherwise be the case,” HSBC says. “Given South Africa’s massive gold and even greater PGM reserves, this could have long-run bullish consequences for prices.”
By Allen Sykora of Kitco News; asykora@kitco.com
So auto industry demand of Pd is up this year. Meanwhile South African miners may/will not invest in maintaining production, due to political threats. Further from my comment above, Norilsk is changing it's production method to favour environment and Nickel production, with far less Pd as a result, from 2.2 M oz to 1 M Oz. South Africa and Russia has, what, 70-80% of world production of Pd currently? Further Russia may be out of their strategic stick pile of Pd...
Seems we are in a perfect storm/short squeeze condition for Pd. The sky may very well be the limit...