It is interesting to note that palladium has been relatively unaffected by the huge drop in platinum price:
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Thursday January 6, 7:16 am Eastern Time
Platinum and silver down in sluggish precious metals
LONDON, Jan 6 (Reuters) - Platinum prices fell to the lowest levels for eight weeks in
Europe on Thursday, as major supplier Russia officially unblocked metal exports, traders
said.
Other metals were affected by the bearish trend in platinum, with silver falling to eight week
lows on concerns that China's central bank will sell on the world market.
Gold wandered back to the $280.00/ounce level it has tested several times this week but palladium bucked the trend, with the
market steady on industrial demand.
``There are a lot of tired longs in platinum now and with gold and silver jittery they are selling out,' one trader said.
Platinum was fixed at $420.00 an ounce this morning but subsequently dipped to $412.00/$417.00, down from Wednesday's
New York close of $421.00/$426.00.
Earlier on Thursday, an amendment to a Russian law which had blocked exports of platinum group metals (PGMs) except
palladium in 1999 became effective when it was published in the official Rossiiskaya Gazeta.
The amendment, signed by Acting President Vladimir Putin on January 2, authorises ``wholly state-owned enterprises to carry
out exports according to an order established by Russian legislation.'
This formula corrects an article in the Law on Priority Budget and Fiscal Policy Measures adopted in December 1998 which
allowed only ``specially designated state organs' to export PGMs.
The new phrasing allows Almazjuvelirexport, Russia's sole precious metals and gems exporting agency, back into the platinum
and rhodium market.
Russia's PGM holders, the central bank, the precious metals and gems reserve Gokhran and metals giant Norilsk Nickel must
now obtain quotas for exports in 2000. Before 1999 Russia accounted for around 20 percent of world platinum supplies.
Palladium exports, by contrast, did not stop in 1999 as the order relating to sales was defined by presidential decree.
In Europe palladium was fixed at $435.00, up $2 from Wednesday afternoon's fixing.
"There is good industrial demand -- end-users are building some stocks, the trader said.
SILVER TARNISHED BY THREAT OF CHINESE SALES Silver continued to decline, responding to Wednesday's news
China's central bank could start selling reserves. Futures selling in New York was met by further sales in Asia today.
The People's Bank of China, the central bank, is likely to reduce its silver holdings by selling some on the international market,
the China Mining News reported on Wednesday.
China's silver production in the 1990s outpaced demand and the surplus in the five years between 1994 and 1998 was nearly
2,900 tonnes, the official industry publication said in its Tuesday edition.
It estimated current Chinese silver production at 1,300 tonnes a year and demand at 800 tonnes.
Spot silver was indicated at $5.12/$5.15 an ounce, down from the New York close of $5.16/$5.19.
Gold was testing support at $280.00 an ounce, reversing early upside direction in line with the industrial metals.
Analysts at Deutsche Global Mining said business was not expected to pick up to normal levels for some 10 days, resulting in
illiquid markets with potentially large price swings on limited trades.
``The $275 level is expected to be supported if further downward pressure occurs,' Deutsche said in a report. |
