Monday , 20 August 2018


Weakening USD Underlines Case For Owning Precious Metals (Gold, Silver, Platinum & Palladium)

…Palladium has surged a massive 17% in just nine trading days on concerns about supply from Russia which is the world’s largest producer of palladium accounting for 40% to 50% of total global palladium.

The original article has been edited here for length (…) and clarity ([ ])

…Global palladium demand outstripped supply by 23 tonnes (25.4 tons) in 2017, so depleted stocks of this very rare and finite metal were already running low. Palladium is a key component in the global car industry and this will cause difficulties for international car manufacturers.


Palladium in USD 20 Years – Macrotrends.net

Were Russia to restrict the supply of palladium due to the bombing of Syria against its will or, indeed, due to the latest round of sanctions, palladium prices will see even greater gains.

Stocks have remained buoyant so far but the U.S. dollar and U.S. bonds have seen selling pressure. The long term fiscal outlook for Trump’s America is increasingly precarious with $1 trillion plus budget deficits being projected for the foreseeable future. This makes the dollar vulnerable in the medium and long term and underlines the case for owning the precious metals of gold, silver, platinum and palladium.

The fundamentals of very depressed silver are arguably even better than palladium. Palladium is not far from all time record nominal highs (see chart above) while silver at just over $17/oz languishes some 65% below its record highs of near $50/ozt in April 2011.

Silver is arguably the cheapest and best value asset in the ‘inflated assets’ world of today. Due to the very positive supply demand fundamentals for silver, including increasing investment demand from the “prudent smart money”, expect silver to see similar sharp gains once it has a weekly close and breaks out above $18.50/oz.

Larger allocations to gold are merited, then silver and investors should consider very small allocations to platinum and palladium.

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