News

Tue 10 Nov 2020

News

IMPORTANT DISCLAIMER: any and all views expressed here are simply good faith views and should not be taken as recommendations or inducements to buy or to sell or to othwise trade in any way whatsoever.

GENERAL PRECIOUS METALS: If you are viewing on a desktop or laptop the retrospective London afternoon fixes in pounds sterling should display along the top of every page on this MTD website OR if you are viewing on a phone you should see them in pounds sterling by clicking on the contents bars displayed to the right hand side of the site on your phone. Metals are traded globally priced in US Dollars so prices in pounds sterling, euros and other currencies are subject to exchange rates.

 

GOLD:  a Biden victory has reduced fears concerning the US - CHINA situation plus news of a reportedly effective and available vaccine for the CO19 virus initially diminished the gold price ( probably due to speculators switching funds back to stocks ) but as the reality of the developed world's economy has not yet changed the gold price looks to be recovering at this time of writing. Please note that simple supply of and demand for physical gold is often of less importance to its price than market sentiment; there is something of a chicken and egg situation as the massive paper/electronic ( ie. futures, options, derivatives) trade is a huge market factor which might be supposed to be able to serve political & national economic aims apart from commercial interests.

 

PALLADIUM: this year the price reached highs and then crashed 30% and increasing media comment of platinum possibly being used as a Pd substitute in auto catalysts caused further volatility: the current bullish sentiment for gold has knocked on to other precious metals and currently palladium has been around £1700 - £1800 per troy ounce but with very wide market spreads. UPSIDE PRICE PRESSURES - the major Russian producer Norilsk announced last year that they had received their government's approval to purchase up to 600,000 ounces of palladium from the Russian Central Bank and hold a substantial stock of the metal. That amount of the element affords its controllers tremendous market clout. Whist palladium has been dentistry's most used noble metal it is chiefly utilised for auto catalysts in petrol engine vehicles thus benefitting from the switch away from diesel. DOWNSIDE PRICE CONSIDERATIONS - any increase in electrical vehicle usage looks to eventually dent demand. Of more immediate concern might be (1) the introduction of thinner catalysts - it's only the surface that acts, (2) an overall slowing of vehicle production due to economic conditions, (3) an increase in the supply of metal recycled from scrap encouraged by current prices.

 

PLATINUM: the price has risen. Platinum coud be substituted for palladium in petrol driven vehicles but the re-jigging of vehicle production to facilitate that change could be expensive and cause a decrease in the two metals price differential and thus negate some or all of the aparent advantage of such a change over for vehicle manufacturers. Other than possible hydrogen fuel cell requiremernts there look likely to be new nano-technology applications for platinum.