I wrote yesterday about Palladium's $111 drop, and my clear view that I would buy Platinum, equal dollar weighted, given price differentials, over Palladium. Having said that though, the Palladium market is TIGHT, and will remain TIGHT, and THE ENTIRE PLATINUM GROUP METAL COMPLEX (PGM) is mispriced and going substantially higher. Period.
It doesn't take much to look at the distribution of supply (primarily Russia and South Africa); the utility troubles and left leaning orientation in South Africa; the small sizes of these markets; their critical uses; the lack of inventory.
THE REAL STORY WILL NOT BE $100 PRICE DROPS, BUT $100 PRICE INCREASES THROUGHOUT THE PGM SPACE.
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