Your trusted source for investing success

Tag: palladium stock

By Michelle Smith – Exclusive to Palladium Investing News

Palladium supply is outpacing demand. Russia’s stockpiles have been a source of about a quarter of the global supply for 20 years, said Francis McAllister, CEO of Stillwater Mining (NYSE:SWC). However, it’s believed that by 2012, Russia will leave the seller’s table, which may widen the deficit and boost prices.

Russia sold about 800,000 ounces of palladium from state reserves in 2010 reported research company GFMS. The amount that will be sold this year is still a matter of speculation.

If there are any palladium deliveries from Russia in 2011, these will be the remains of the stockpiles said Viktor Sprogis, Deputy Chief Executive Officer of Norilsk Nickel (LON:MNOD), the world’s largest palladium producer. Furthermore, he says no supplies are expected in 2012.

“Remains,” generally an unemphatic word, is very significant in Sprogis’ statement because there are widespread beliefs that Russia’s departure from the market is not voluntary. Rather, rumor has it that the nation has depleted its renowned stockpiles.

During the 1970s and 1980s, the Russian government amassed large quantities of palladium. According to the UN, Russia was the only nation to hold significant stocks of the metal. The potential size of those stockpiles has always been the great unknown in the palladium market said Leon Westgate, a metals analyst at Standard Bank.

Although it is still unclear what the Russian government had then or has now, the rumors circulating about depleted stocks are being granted some degree of credibility by comments from those close to the situation.

For example, last year, the Dow Jones Newswires cited a Russian Finance Ministry official as saying the nation’s palladium stock was “practically nil.” In an interview in London, Sprogis said that judging by indirect indicators, the government stockpiles are gone.

If Russia’s palladium is gone, what happened to it is another unanswered question. Considering that the nation has been a major supplier, a person may be quick to assume that sales have simply eroded the supply. However, the UN says it is widely believed that western banks have a substantial portion of Russia’s palladium due to use for collateral on loans.

Over the years, Russia has been a major influence on palladium prices. McAllister said any remaining Russian inventories would probably not have much of an impact on the market if they were sold.

But, impact is expected from Russia’s absence from the palladium supply chain. The nation’s departure could result in a deficit that lasts until 2015… and not a minor deficit. Johnson Matthey reported that in 2010, gross demand for palladium increased 23 percent to hit a record 9.63 million ounces. The total global production was less than 7 million ounces.

Though Russia may withdraw from the sales team, the demand is not expected to subside and the prices are not expected to retreat. Top analysts forecast prices to reach $940 an ounce or higher by the end of the year and to keep rising thereafter. If history is an indicator of what will happen, investors may want to look back to 2001 when uncertainties about Russian supplies caused palladium prices to soar to a record high of $1,125 an ounce.

What will the world do if the Russian government says bye to the palladium market? Some analysts believe stockpiles held by investors and consumers will be sought as pain relievers.

Johnson Matthey, reported that physical investment in palladium rose 74 percent to over a million ounces, due mainly to strong flows into palladium ETFs, such as the new Palladium Trust (NYSE:PALL) and the more seasoned ETFS Physical Palladium (LON:PHPD).

The Palladium Market Without Russia

Rumors that the Russian government will withdraw from the palladium market are appearing more credible all the time. If this happens, the current supply deficit and high prices may only be a prelude of future market conditions.

By Michelle Smith – Exclusive to Palladium Investing News

Palladium supply is outpacing demand. Russia’s stockpiles have been a source of about a quarter of the global supply for 20 years, said Francis McAllister, CEO of Stillwater Mining (NYSE:SWC). However, it’s believed that by 2012, Russia will leave the seller’s table, which may widen the deficit and boost prices.

Russia sold about 800,000 ounces of palladium from state reserves in 2010 reported research company GFMS. The amount that will be sold this year is still a matter of speculation.

If there are any palladium deliveries from Russia in 2011, these will be the remains of the stockpiles said Viktor Sprogis, Deputy Chief Executive Officer of Norilsk Nickel (LON:MNOD), the world’s largest palladium producer. Furthermore, he says no supplies are expected in 2012.

“Remains,” generally an unemphatic word, is very significant in Sprogis’ statement because there are widespread beliefs that Russia’s departure from the market is not voluntary. Rather, rumor has it that the nation has depleted its renowned stockpiles.

During the 1970s and 1980s, the Russian government amassed large quantities of palladium. According to the UN, Russia was the only nation to hold significant stocks of the metal. The potential size of those stockpiles has always been the great unknown in the palladium market said Leon Westgate, a metals analyst at Standard Bank.

Although it is still unclear what the Russian government had then or has now, the rumors circulating about depleted stocks are being granted some degree of credibility by comments from those close to the situation.

For example, last year, the Dow Jones Newswires cited a Russian Finance Ministry official as saying the nation’s palladium stock was “practically nil.” In an interview in London, Sprogis said that judging by indirect indicators, the government stockpiles are gone.

If Russia’s palladium is gone, what happened to it is another unanswered question. Considering that the nation has been a major supplier, a person may be quick to assume that sales have simply eroded the supply. However, the UN says it is widely believed that western banks have a substantial portion of Russia’s palladium due to use for collateral on loans.

Over the years, Russia has been a major influence on palladium prices. McAllister said any remaining Russian inventories would probably not have much of an impact on the market if they were sold.

But, impact is expected from Russia’s absence from the palladium supply chain. The nation’s departure could result in a deficit that lasts until 2015… and not a minor deficit. Johnson Matthey reported that in 2010, gross demand for palladium increased 23 percent to hit a record 9.63 million ounces. The total global production was less than 7 million ounces.

Though Russia may withdraw from the sales team, the demand is not expected to subside and the prices are not expected to retreat. Top analysts forecast prices to reach $940 an ounce or higher by the end of the year and to keep rising thereafter. If history is an indicator of what will happen, investors may want to look back to 2001 when uncertainties about Russian supplies caused palladium prices to soar to a record high of $1,125 an ounce.

What will the world do if the Russian government says bye to the palladium market? Some analysts believe stockpiles held by investors and consumers will be sought as pain relievers.

Johnson Matthey, reported that physical investment in palladium rose 74 percent to over a million ounces, due mainly to strong flows into palladium ETFs, such as the new Palladium Trust (NYSE:PALL) and the more seasoned ETFS Physical Palladium (LON:PHPD).

Enter Your Log In Credentials
×

Privacy & Legal Policy

This website is part of the Investing News Network published by Dig Media Inc.

Overview

INN's mission is to be the world's number one source of independent, unbiased news and education helping investors realized their financial goals. We also strive to be internationally respected for our integrity, our people and our commitment to excellence. Therefore, we are very concerned with the privacy rights of our audience and are committed to protecting the information collected about you.We have taken extensive measures to protect the confidentiality of your personal information and to protect your data from misuse and unauthorized access or disclosure. Unfortunately, no data transmission over the Internet can be guaranteed to be 100% secure. As a result, Dig Media cannot ensure or warrant the security of the information you transmit to us and you do so at your own risk.

Contact Information

Our postal address is

L200 - 560 Beatty Street,

Vancouver, BC V6B 2L3

We can be reached via e-mail at info@digmediasolutions.com or telephone at +1-604-688-8231

Information Collected

For each visitor to our website, our web server automatically recognizes no information regarding the domain or e-mail address.

We collect information volunteered by the visitor, such as survey information and/or site registrations, name and address, telephone number.

The information we collect is used to notify visitors about updates to our website, shared with other reputable organizations to help them contact visitors for marketing purposes.

With respect to cookies: When you visit our websites, we send one or more cookies, a small file containing a string of characters, to your computer that uniquely identifies your browser during your visit. We use these cookies to maintain your connection as you move from page to page, and to ensure anything you submit, such as a comment or a form, is not rejected. You can reset your browser to refuse all cookies or to indicate when a cookie is being sent. However, some website features or services may not function properly without cookies.

If you do not want to receive e-mail from us in the future, please let us know by sending us e-mail at the above address.

Persons who supply us with their telephone numbers on-line may receive telephone contact from us with information regarding new products and services or upcoming events. If you do not wish to receive such telephone calls, please let us know by sending us e-mail at the above address.

Ad Server

With respect to Ad Servers:

Other third-party companies which place advertising on our site may collect information about you when you view or click on their advertising through the use of their cookies or other tracking technologies, which may include delivering targeted advertisements and marketing messages based upon the third party websites that you visit, or other purposes. We cannot control this collection of information and are not responsible for the privacy policies and data collection, use and disclosure practices of these third party advertisers. You should contact these third party advertisers directly if you have any questions about their use of the information that they collect from you. Google-DoubleClick DFP is our third party ad server. If you would like to know more about their information gathering practices and opt-out procedures, please see Google ad policies.

Also, if you would like more information about this practice and to know your choices about not having this information used by these companies, please see NAI Opt-out Options.

Information Use

We only share personal information with other companies or individuals outside of the cases outlined above in the following limited circumstances:

We may share with third parties certain pieces of aggregated, non-personal information, such as the number of users who searched for a particular term, for example, or how many users clicked on a particular advertisement. Such information does not identify you individually.

Remarketing

We may remarket your information. Remarketing is a way for us to connect with users, based upon your past interactions with INN websites. Third-party marketing vendors may be hired by INN to perform remarketing services. As a result, third-party vendors, including Google, may show INN ads on sites on the internet. Third-party vendors, including Google, use cookies to serve ads based on a user's prior visits to INN websites.

To opt out of customized Google Display Network ads click here. To find out more about how Google uses any data it collects please visit http://www.google.com/privacy_ads.html.
Any information collected is used only for remarketing purposes and will not be used by them for any other purpose.

Future Use

From time to time, we may use visitor information for new, unanticipated uses not previously disclosed in our privacy notice. If our information practices change at some time in the future we will post the policy changes to our website to notify you of these changes and provide you with the ability to opt out of these new uses. If you are concerned about how your information is used, you should check back at our website periodically.

Accessing Your Data

Please contact us at the address above for any additional questions about the management or use of personal data.

Upon request we provide site visitors with access to communications that the visitor has directed to our site (e.g., e-mails, customer inquiries), contact information (e.g., name, address, phone number) that we maintain about them.

Visitors can access this information by e-mailing us at the above address.

Upon request we offer visitors the ability to have inaccuracies corrected in contact information.

Visitors can have this information corrected by sending us e-mail at the above address.

Security

With respect to security: We have appropriate security measures in place in our physical facilities to protect against the loss, misuse or alteration of information that we have collected from you at our site.

Your Acceptance of These Terms

By using this site, or by submitting personal information to us, you signify your agreement to Dig Media's Privacy Policy and Terms of Use. From time to time we may change or update our piracy policies. It is your responsibility to check back regularly to inform yourself of such changes. Your continued use of this or any Dig Media website following the posting of changes to these terms will be deemed as your acceptance of those changes.

The foregoing policies are in effect as of August 1, 2012. Dig media reserves the right to change this policy statement at any time by posting the revised policy to this website. This statement and the policies outlined herein are not intended to and do not create any contractual or other legal rights in or on behalf of any party.

If you feel that this site is not following its stated information policy, you may contact us at the above addresses or phone number.

×
Investing News Network