A spot price of $600 for palladium is within easy reach. right now it is $579 per troy ounce according to kitco.
All it would have to do is go up roughly as much as it did Thursday, which was $25 per ounce.
i am encouraged by the fact that palladium and platinum are approximately of the same rarity, with both produced at a rate of 6 million ounces or so per year, yet platinum is still 3.7 times more expensive. they can both be used effectively for the primary industrial use, which is catalytic converters for cars and trucks.
When i started checking that ratio just a couple of weeks ago, platinum was 4.5 times more expensive.
thinking longer-term, if i were a vehicle manufacturer, i wouldn't mind paying quite a bit more than $600 for palladium if it could get the same job done with the same amount of metal as platinum (or even if it required a little more metal).
i also note that even if you allow for platinum softening up to 1800, palladium would be just half as expensive at 900.
With Thursday's surge, you could see the ripples of interest spreading out from the more established stocks to the more speculative stocks.
NOT, which made a double-digit percentage gain, traded 3.5 mm shares thursday.
PDL traded 2.7 mm shares, rose 4.4 percent.
MacDonald Mines BMK traded nearly 5 mm shares thursday. that is the one in which three gold mining icons took stock through January PP -- Robert McEwen, Randall Oliphant, and Pierre Lassonde. BMK rose 3.6%.
Fancamp FNC, which according to Alpha Romero has some property that could get a spillover from Noront, rose an awesome 54 cents or 25 percent to 2.74.
Michael |
