Palladium Surpasses Gold Record High from 9 years ago

Inter-day last Friday Palladium reached an All-time Record high of $1944.80 per ounce to eventually close at $1928 for the week.

The one year chart shows a 54.6% gain, year to date.

The surpassed the All-time Record high in Gold which was last achieved in 2011.

Gold has had an impressive 23.6% gain for the year but Palladium is the clear winner as both metals started the year

The reason behind the move is as follows:

TD Securities: The platinum group metals as “on fire " as South African power woes added to supply concerns, particularly for palladium, which is currently in short supply.

The palladium metal moved to a wide price premium over platinum in the last two years. Palladium is used for catalytic converters in gasoline-powered cars, popular component in the No. 1 and No. 2 car markets of the world, China and the U.S.A.

This is probably related to the power outages in South Africa.”

Rolling power blackouts have occurred this week in South Africa. Heavy rain and flooding contributed to the problems at public utility, according to news reports. The country’s president of SA has also attributed some of the issues to suspected sabotage at power stations. This has impacted the countries mining operations, which rely heavily on electricity for operations that occur far below the ground.

In addition, Russia, is one of the world’s two leading producers of the platinum group metals.

It will only be a matter of time before the automobile companies begin to convert to Platinum for the use in catalytic converters which has been delayed due to the cost of tooling and change of supply chain purchases.

Keep stacking. Go get you some.

Thanks for following @RollingThunder