Say Palladium. Manic Metals Report 06/25/2024

Maybe Palladium isn’t going extinct after all? The knock on the platinum market and one of the reasons why it’s been down this year is because of concerns that the internal combustion engine is going to go the way of the horse and buggy.
Yet recent events suggest that the internal combustion engine is going to be around for a long period of time. Reports that over 40% of electric car buyers have buyer’s remorse as well as major manufacturers training away from electronic vehicles the demand for catalytic converters may turn out to be stronger than people thought.
We know that one of the reasons why we saw pop up again in the price of the beleaguered Palladium market was the increasing risk of tensions with Russia and the United States.

The attack by Ukraine on Crimea led Russia to threaten the United States saying that they were responsible for the attack.

Russia is the world’s largest exporter of Palladium controlling almost 18 Percent of supply that gave the market a boost.

STATISTA says that the silvery-while metal palladium is the most prominent platinum group metal (PGM) following platinum, with global palladium production amounting to 210 metric tons in 2023.

Palladium is a chemical element and one of the PGMs that share similar physical and chemical properties, and which tend to be found in the same mineral deposits.

Russia was the leading mine producer of palladium in the world in 2023, with an estimated 92 metric tons produced that year.

Palladium production in South Africa and Canada ranked second and third that year, respectively.
As a result of increased industrial demand, such as in electronic devices, the global market value of palladium is forecast to reach 24 billion U.S. dollars in 2030.

Why Palladium is pulling back after its big surge yesterday we still believe there’s significant upside in the platinum market especially if Russia decides to withhold supply.

Palladium Exports by country Russia: US$5.3 billion (18.1% of total palladium exports)/United States: $4.9 billion (16.5%)/ South Africa: $4.6 billion (15.8%)/ United Kingdom: $4.3 billion (14.7%)/Italy: $2.4 billion (8.2%)/Germany: $1.7 billion (5.8%)/Belgium: $1.6 billion (5.5%)/Switzerland: $1.1 billion (3.8%)Hong Kong: $878.3 million (3%) Japan: $769 million (2.6%)South  Korea: $459.1 million (1.6%) Norway: $427.2 million (1.45%) This comes as JP Morgan is warning about a structural shortage on both gold and silver,  JP Morgan said that they view recent consolidation and precious metals as a buying opportunity they also point to copper that they think could present a good buying opportunity.
Iin recent weeks copper has been how back on concerns about global demand especially when it comes to China’s economy and their record copper exports.  Is there economy that slow or are they just selling copper high that they bought very low.

Obviously, inflation data could be the major factor when it comes to a lot of the metals this week.

Friday’s PCE index for May but Thursday’s durable goods could have a big impact on precious metals .
My base case on the metals continues to be very bullish we expect silvers at some point could double in price from this level.
Prior to that of we will see some extreme volatility so be cautious. Or buy physical.

I expect to see also more demand for physical golds by central banks in the coming weeks.
Tere is a lot of talk about Saudi Arabia diversifying themselves from the US dollar in oil trade,’
I also mean that they will probably be in the market to buy more physical gold.

The Saudi their central banks they will be joining other countries that have been surging down their production in a big key driving factor for gold could be when China resumes its purchases of the physical metal.
The World Gold Council said last week that 29% of central bank respondents anticipate adding more gold to their reserves in the next 12 months. That’s the largest percentage since the WGC began this survey in 2018. “ Make Sure you stay tuned to the Fox Business Network! Invested in you! 888-264-5665 or email me at pfllynn@pricegroup.com based on popular demand I am writing the Phil Flynn manic metals report as well as the Energy Report. Also sign up for the daily trade levels that cover all the major commodities.