Palladium Surges To 14 Year High; "Can Go To $1,000" On Miner Strikes
Submitted by Tyler Durden on 06/11/2014 11:42 -0400
Palladium prices last traded this high in March 2001. The recent price spike has been driven by investors' concerns that a mining strike in no.2 producer South Africa could chock off supplies at the same as an over-exuberant auto manufacturing world drives demand for the car-exhaust metal.
Palladium's industrial uses, and the dependence on South Africa for supplies, have helped keep the metal aloft even as other precious metals stumbled this year. Miners in South Africa went on strike in January for the second time in two years, demanding higher wages and better working conditions.
As WSJ reports, the walkout has sharply reduced palladium exports from South Africa, leaving global palladium inventories have dwindled and are now sufficient to meet only 16 weeks of demand and investors exclaiming... "There is no reason to sell palladium right now," said Frank Lesh, a broker at Future Path Trading. "This thing can go to $1,000." But not everyone's so bullish..
Link: http://www.zerohedge.com/news/2014-06-11/palladium-surges-14-year-high-can-go-1000-miner-strikes
Quelle: zerohedge.com
Quelle: wsj.com
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