Palladium Hits Highest Price in Three Years
By GCRU Gold News on Thursday, June 12 2014, 07:52 - Permalink
Palladium prices surged to a three-year high, reflecting investors' concerns that a mining strike in No. 2 producer South Africa will choke off supplies.
"If there's not much supply, it all just gets sucked up" by manufacturers and other palladium consumers, said Frank Holmes,
The miners' strike, which involves some 70,000 workers, is the longest ever in South Africa. After Monday's talks ended without an agreement, newly appointed South African Mining Minister Ngoako Ramatlhodi said he would exit from the talks.
Meanwhile, palladium users have few other places to turn for supply. Russia exports more palladium than South Africa, but relies on Cold War-era stockpiles to supplement production. Many analysts think those extra supplies are running low. No other country is a significant palladium producer.
"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."