Today is Wednesday, March 20, 2019. April Platinum is $857. Reuters reported yesterday that Russia was planning to ban exports of precious metals scrap. Some likely small amount of that scrap is Palladium. But here is what is important... in the Platinum Group Metals (PGM) market, "RUSSIA IS LARGE AND IN CHARGE!" At this early stage of the rerating of the PGM marketplace, I don't think you will yet hear this from anyone else!"
So what do I mean? Russia produces 70% of the world's Palladium, and 11% of the world's Platinum, as a by product of nickel production. The reserves, in the ground, in Russia, are enormous. Russia is clearly the factor in Palladium, which is at all time highs, with demand significantly outstripping supply. I don't expect this situation to change, and it leaves Russia "in charge" of one of the key PGMs, whose use is fundamental not only in catalytic converters but throughout the civilian and military economy.
As the second largest Platinum producer, after South Africa's 70% Russia clearly is also a swing factor here.
What's the issue? Read my eBook to understand the real structure of the PGM markets in the context of modern society, but the point is that the United States has no influence in this market as the only US supply is owned by the South African company, Sibanye-Stillwater, and platinum, as well as all of the Platinum Group Metals, are critical for the functioning of a 21st century world economy. Russia is large and in charge, and overtime, I am sure you will hear more of this theme, suggesting that ownership of the PGMs now is an opportunity and cheaper than acquisition later when the full structure of the market, in the many dimensions I outline in my eBook, become fully appreciated.