Don’t count out the possibility of the price of Palladium rising with oil-linked NOK on Powell testimony, as Mr. Bernstein and Mr. Pindell are likely to bring up an incredible prospect for gold investors. Both offer solid conclusions that have implications not only for the current time but for the future.
Some other commodities and currencies can be seen as not “flat” at all, as far as the fundamentals are concerned. The price of these commodities (and currency too) has varied on a day to day basis. The underlying reason for this could be because of a variety of variables; including a large swing in gold/silver prices over the course of a week, the ability of investors to choose the direction in which the price is headed, supply/demand scenarios, etc.
We should be very concerned about this scenario, given that the price of palladium (a specific element in platinum) is also subject to a large change in price. We also have a vast natural resource that is available to us – if we know how to use it and get the most out of it.
This precious metal has been considered to be one of the best investments on the stock market, and other markets too, for many years. While it is often a topic of debate within the bullion industry itself, the consensus view is that palladium bullion holds value above and beyond its intrinsic worth, which is an essential point to consider.
This element is often used as an investment in penny stocks and other smaller companies. In these cases, a company’s resource makes sense, given the generally lower cost of production, and the low barrier to entry.
Now, this could all change if Palladium becomes the fuel of choice for the Jetsons’ car. We will surely learn the answer to this question during a huge consumer revolt of automobile fuel.
In fact, if the situation calls for it, the price of palladium will fall enough to bring down the price of gold and silver in the long run. The fundamental reasons will remain the same as we have always seen them – and more, if there is going to be a scarcity of palladium, either in the open market or in the future.
The only real distinction for Palladium, as far as these two professional analysts are concerned, is that it will actually move up against the dollar, and it may even rise further against both the Euro and the Pound Sterling. This is actually based on how these elements are both treated by international standards, and what is contained in them.
The use of Palladium is going to increase over the coming years. This is because the oil crisis has led to oil prices surging above their cost of production, and this has attracted demand from the countries that rely on oil as a source of revenue.
There will be a plethora of suppliers over the coming months and years, which will result in a large increase in the volume of supplies. Over the coming year, more barrels of oil are going to be produced from U.S. shale and tight oil sources, and with this supply being heavily leveraged by their producers, the likelihood is that the oil markets will remain high (subject to a smaller supply, and higher demand).
We will see oil/silver market rally based on demand, as more producers increase their efforts to capture the free-market share. If we get more of a supply/demand scenario in place, then it is easy to see where the price of palladium will be heading (above, and above).