The record-setting palladium spot price, which passed $2,500 oz intraday Friday, January 17, 2020, is continually exposing how attempts to control and contain precious metals prices and general commodity price suppression, eventually ends and backfires into physical shortages and exponential price runs higher as a result.
Low suppressed, often derivative discovered price points, eventually lead to market shortages and much higher bids prices to incentivize real-world producers of real things actually to bring that commodity or precious metal to the market.
That is what we are now seeing in the rapidly escalating palladium price.
Today we will cover some major points on why we will also eventually see this kind of fiat US dollar-denominated price action for the other three primarily known precious metals to come.
If you find value in this video, we made for you today, be sure to share it with others who may benefit from acquiring a prudent physical position in precious metal bullion products to come.
Bullion Podcast | Palladium Now, Gold-Silver-Platinum Later
Back to palladium for now.
With this chart on the left in the video above, we can see how Palladium outperformed virtually every commodity last decade, especially in the latter half of the 2010s.
The leading suppliers of physical palladium ore are two nations which, to be frank, are not super dependable global trading partner regions. For instance, South Africa is currently suffering many electrical blackouts in its failing infrastructure, precious metal mining strikes, and political issues ongoing.
While Russia’s palladium supplies can and have been cut off entirely before having produced situations in this very same 21st century when the palladium spot price was as much as four times the then price of gold.
We would suggest that no one hold their breath thinking this is some kind of “palladium bubble” about to collapse.
Instead, we are going to go as far as to say that if you hear or read someone describe this as a “palladium bubble,” you can pretty much ignore or heavily discount virtually anything they may say in the financial future.
Today we are going to dig into many record-setting palladium details, some of which the mainstream financial media will never cover.
By doing so, you will get a better understanding as to why and how this current palladium fiat Federal Reserve note price ramp has occurred and why further record high palladium US dollar prices are more than likely to continue onwards ahead.
Today we are going to hone in on two significant moments in time, whose contributing factors are still ongoing today. Not merely in the record setting palladium market, but too in virtually every London, COMEX, CBOT, and NYMEX market derivative traded.
We are going to briefly also hear a few minutes in a throwback interview I had with an expert in the precious metals arena on why this record price ramp in palladium was likely inevitable AND too why that is the same for likely what is coming to the gold, platinum, and silver markets.
One final note before we begin in earnest.
This Reuters article published today, highlights another precious metal that has been performing exceptionally well of late, rhodium.
If you know about rhodium, you know it is even rarer than platinum, and it has no derivative futures contract ‘price discovery’ market attached to it.
Throughout this post-1971 Nixon full fiat Federal Reserve notes financialization era, now some 50 years in the making, this is the 4th time that Rhodium has multiple in price by some 300 to 2000% within a few years.
Juxtaposed next to platinum and rhodium in this Reuters article is underperforming gold and platinum, respectively.
What the authors fail to mention is that the price action chart you see on the left is likely to show itself on the right this decade, and possibly into the next for both gold and platinum to come.
Palladium Record Price Contributor #1
Late last, the week we broke the news here for SD Bullion channel subscribers and viewers, that the CME Group which owns and operates the COMEX (where majority gold and silver price discovery occurs), also the NYMEX (where majority platinum and palladium price discovery occurs) has extended its CME Group COMEX NYMEX - Central Bank Incentive Program.
This likely commodity price suppression program has been running since the middle of 2013. It is a high volume trading discount program where foreign central banks or large financial institutions such as the Bank for International Settlement’s trading desk can trade almost all CBOT, NYMEX, and COMEX derivative contracts at a discount versus counter-party stooges unaware that this program even exists.
This is akin to Las Vegas having an open blackjack tournament while allowing the most significant card counters and off table currency counterfeiters to come on and bet according to their approved agendas.
So this letter written from the lawyer representing the CME Group’s COMEX NYMEX and CBOT derivative casinos is adequately notifying the supposed regulatory agency overseeing them, called the CFTC that until the end of January 2021 extended. The tables will remain heavily slanted in favor of approved foreign central bank commodities, precious metals, and derivative trading.
We know well ourselves, many people out are running out time to see their precious metal bets perform versus the financially engineered backdrop ongoing.
But we cite this CBIP program again today to remind you how this new Gold Price Suppression program likely gets its comeuppance.
Look at how post-2013 NYMEX palladium bullion holdings got drained.
Look at how post-2013 even palladium ETFs have had to get raided too for their bullion holdings and physical palladium inventories.
Remember how the title of today’s article, we started with quotes out of London, stating, “There is no metal,” referencing the palladium shortage ongoing.
Look at Palladium lease rates out of London today from our tweet of the day provided by precious metals mining consultant and expert David Jensen.
David also has a take on Rhodium and how these two tiny precious metals are now illustrating the systematic price discovery fraud we have been living under for decades running.
Looking out this decade into the next, we expect to see COMEX physical bullion drains of both gold and silver bullion. Too on the NYMEX, as eventually, platinum will likely get thrifted more for palladium, we expect to see a drain of the fractionally reserved platinum bullion holdings underlying that leveraged derivative exchange.
If you are in any of those precious metals derivatives for the long term, you may want to consider too how NYMEX palladium drains have also occurred in all palladium ETFs in total.
In other words, having your bullion and owning it outright before there is a real on bullion makes prudent sense given the palladium facts ongoing.
Our 2nd Palladium Record Price Contributor Point Today
We are going to have a look back and briefly listen to my discussion with David Jensen again in late September 2018, a time when most major precious metals bulls were beaten down with grinding sideways price action and low fiat price point action comparatively to today in early 2020.
Have a listen for what David had to say back when palladium was priced just over $1,000 an ounce some 15 and a half months ago. Almost every word he said still applies now in these precious metals markets.
While most of us here likely do not have significant investment positions in palladium, we argue it is indeed showing the likely paths ahead for the other three primary precious metals in the years to come.
Perhaps now is the time to get a prudent investment position, especially while commodity prices remain near 100-year low valuation levels versus fiat financialized paper assets at the moment.
A bullion buyer years before the 2008 Global Financial Crisis, James Anderson is a grounded precious metals researcher, content creator, and physical investment grade bullion professional. He has authored several Gold & Silver Guides and has been featured on the History Channel, Zero Hedge, Gold-Eagle, Silver Seek, Value Walk and many more. You can pick up Jame's most recent, comprehensive 200+ Page book here at SD Bullion.
Given that repressed commodity values are now near 100-year low level valuations versus large US stocks, James remains convinced investors and savers should buy and maintain a prudent physical bullion position now, before more unfunded promises debase away in the coming decades.