Palladium Broke Thru $1,300

Palladium Broke Thru $1,300

The price of Palladium just broke thru the $1,300 dollar spot level after experiencing a $40 Sweep higher on Friday on only 300 future lots traded.

The price of Palladium continuing its upward climb after closing on a strong note last year up over 19 percent. Supply issues are still the driving force to higher prices.

A small market in comparison to the other three metals, the price of Palladium is easily moved with just a small amount of volume, something that attracts Commodity Hedge Funds.

The price of Platinum started the year on a positive note, as it too took in some Commodity Hedge Fund money. As one Far East PGM trader indicated, “It’s a new year and Hedge Funds have money to invest, so why not invest in a commodity that was so badly beaten up last year?’

Silver starts the year off as the weakest of the four metals as CME warehouse stocks continue to climb, now sitting just short of 294 million ounces held on the shelves. You might see some TV commercials saying Silver is in short supply. Obviously, they are not looking at the enormous amount of Silver held in registered and eligible status in the CME vaults.

The price of Gold continues to climb on a significant amount of news. Geopolitical risks, the wild volatility in the Equity Markets are the main drivers here, no wonder investors are heading for more stable markets with upside potential and a level of safety.

The yield on Ten-Year Treasuries continues to head south now at 2.63 percent. The Bond market and the Gold market acting in tandem attracting nervous investors. Maybe we should call them smart investors instead of nervous investors, as Government spending is out of control, U.S. debt levels are increasing, trade talks seemingly have no end. And who knows what the next move will be by the Fed? Enough on my plate to push the dish away.

Have a wonderful Monday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.