Platinum:Palladium 1:1 ratio?

[Market Harmony]

I never thought that it would even be a possibility, but the ratio of Platinum to Palladium is approaching 1:1. I'm not sure of the reasons behind this, but I do have good knowledge of large undeveloped swatches of land in South Africa that contain a lot of Platinum. Perhaps the market is sniffing that out, or maybe something else. Any thoughts?

http://stockcharts.com/h-sc/ui?s=%24PLA ... 4296924373

[highroller4321]

Platinum use has been way down! Car market has been getting worse, medical field marker is under a lot of uncertainty right now, and I doubt the jewelry market is doing any good. I believe Palladium demand is the same, or off a little as well.

[Market Harmony]

Platinum use has been way down! Car market has been getting worse, medical field marker is under a lot of uncertainty right now, and I doubt the jewelry market is doing any good. I believe Palladium demand is the same, or off a little as well.

Yes, as a use for catalyst, Platinum demand is down significantly. But, I'm not sure of Palladium... if demand is the same, then supply chain must be getting tightened as the price has escalated quite a bit throughout the past 2-3 years.

[68Camaro]

I don't know the ratio of total cost of recovery between the two but the level of both production and reserves is nearly the same so one would expect the price to be nearly at parity. However palladium is 50% concentrated in Russia, whereas platinum is less dependent on Russia, so the tensions between Russia and the west may have contributed to the greater recent change for palladium.

[Robarons]

Curious to see how this pans out- my logic was they wanted to use palladium in lieu of platinum in cars. So $300/palladium and $1800 platinum at the time made me think demand would transfer until they met. Did not think it would be this close

The funny thing is if gold/silver/platinum was to go up you would see the respective coins and scrap enter the market to balance demand. Gold scrap, sterling silver tea sets, and platinum rings. Palladium goes up sharply- the public does not have any of this to ever sell at $800 or $1800 palladium. Likewise it is a industrial metal so its subject to the possible fate of Rhodium too

[68Camaro]

That was a very astute observation at the time. And your follow on observation seems to also be true.
Apart from the auto scrap market there is little source of backup supply. For palladium especially, increased demand can only be met by increased mine production (half of which is Russian). Can't say that about silver or even gold.Even.platinum has a secondary jewelry market. Not palladium (to any extent).

[AGgressive Metal]

platinum has been in use longer, so probably more of it comes back on line per year via recycling, in addition to all the other points already made in this thread

[Recyclersteve]

Did anyone see what has happened to palladium vs. rhodium (not platinum) lately? Per Kitco.com tonight (6/14/17) here are the current quotes:

Platinum $933
Palladium $852
Rhodium $870

It is absolutely amazing that palladium is only about 2% cheaper than rhodium. I remember when rhodium was around $10,000 an oz.!

Disclaimer: I don't trade any of these, so there is no implied recommendation at all being made here.

[Market Harmony]

Palladium is for the first time ever more than $1,000.00 per oz. Platinum is only $944.00 The Pt:Pd ratio finally flipped and doesn't seem to be slowing. What is driving this? It's interesting that at this same time the US Mint has begun to release the new Pd Eagles. I'm not drawing a correlation, I just find it interesting.

[Recyclersteve]

Palladium is for the first time ever more than $1,000.00 per oz.

Actually palladium was over $1,100 very briefly with the Ford Motor Co. induced spike in January, 2001. You can find this by going into Wikipedia and typing "2000s commodities boom." Scroll down a ways for the section on palladium.

Another reason cited by Barron's for the recent palladium spike is this- less production worldwide of diesel cars which use platinum (think Volkswagen) means more demand for palladium. I think they were referring to the long-term effects of the phony vehicle emissions data from a while back, which really punished Volkswagen stock at the time.

From a chart standpoint, if palladium goes above $1,100 again and surges to a new all-time high, the shorts might rush to cover and maybe Ford or someone else might sense a shortage and stockpile the metal again.

[Market Harmony]

Palladium is for the first time ever more than $1,000.00 per oz.

Actually palladium was over $1,100 very briefly with the Ford Motor Co. induced spike in January, 2001. You can find this by going into Wikipedia and typing "2000s commodities boom." Scroll down a ways for the section on palladium.

Another reason cited by Barron's for the recent palladium spike is this- less production worldwide of diesel cars which use platinum (think Volkswagen) means more demand for palladium. I think they were referring to the long-term effects of the phony vehicle emissions data from a while back, which really punished Volkswagen stock at the time.

From a chart standpoint, if palladium goes above $1,100 again and surges to a new all-time high, the shorts might rush to cover and maybe Ford or someone else might sense a shortage and stockpile the metal again.

Yes, you are right. Thanks for the information... never thought to look back 15+ years. I just figured that Palladium was never in such demand before and recent $1000+ was the first time. Was Platinum less than Palladium then, too?

[Recyclersteve]

Thanks for the information... never thought to look back 15+ years. I just figured that Palladium was never in such demand before and recent $1000+ was the first time. Was Platinum less than Palladium then, too?

Platinum prices in January, 2001 (daily closing prices) ranged from $602 to $637/oz. So is was around $500 less than palladium, but only briefly.

Source: http://www.macrotrends.net/2540/platinu ... chart-data