www.varchev.com

Palladium bubble popped

Palladium futures today collapsed by more than $ 100 dollars per ounce on their worst day for more than 19 years. The price has collapsed from a record level of about $ 1,615 per ounce to the expected huge leap in demand from the automotive industry.

June’s Comex futures fell 6.2 percent today, holding more than $ 1412.50 per ounce. Last such a decline was reported on February 23, 2000. Mark Cutifani, CEO of Anglo American, told Financial Times that the recent high-rally palladium has created a balloon that can make many car manufacturers replace it as platinum in the production of catalysts.

“We expect palladium to stay around its current levels for a while, because the price that will have to be paid for switching to platinum is unlikely to be worth it.” – says Cutifani. “But with time, it will change and platinum will” shine “again.

Over the past seven months, the price of palladium has jumped 80%, even surpassing gold and platinum by value.


 Trader Martin Nikolov


Read more:
RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance