Jay,
I have brewed a pot of coffee for a late night call to the land of yodeling. Ahem.
If you accept the premise that going forward it may be advantageous for coins to be minted with more PM content than in the past, and if you look at silver as a possibly large recipient of that demand that implies demand for silver. However, since silver supplies are also earmarked for other, industrial uses and seeing the success of the palladium coins in China prompting other palladium bullion issues, would that not bode well for palladium content in coins and bullion also driving demand?
Also, aside from declining automobile demand (although I'm not sure if China and India would not positively impact the net world position) there are new air quality rules in the US, Europe and Japan that I know of that will increase demand for palladium, cheaper than platinum in catalytic converters for diesel trucks. Some will be for new models, but some demand will be for retrofitting existing models. This is the environmental side of the palladium demand piece.
There is also switching from Platinum, which has become too expensive. Is Palladium a late stage play to the 'depleted inventories' scenario that hit some of the other PMs first?
I have also read about slower deployment of S.A. palladium mines decreasing supply.
I also know from experience that PAL doesn't track the price of Palladium well.
I have read some very positive feedback on how well the public has viewed Palladium coins both from a purely aesthetic position as well as well as the position of collectibility.
This was all prompted by a note from Mahendra. I am eternally grateful to him for pegging the bottom of the silver market, which was around $6.12 in mid-Sept, and which I was able to enter around $6.15 (the other day when silver dropped to $6.95 or so it was just a nibble).
Here is his note, and I am most tempted to act on it:
PALLADIUM
The downfall in copper, aluminium and nickel prices put commodity investors on alert. But there is nothing to worry about in regard to palladium prices from middle of week because this week will be the right time to accumulate palladium from Wednesday. I am still very much hopeful on palladium reaching a new high of 2004.
mahendraprophecy.com
David |
