Platinum and Palladium price action
The strikes in South Africa are nearing 5 months and this week again negotiations including the Government broke down. It is estimated that nearly $2b in revenues have been held up and stockpiles largely exhausted. Palladium is doubly affected as Russia is the biggest supplier and the Ukraine situation has seen that inhibit supply too.
Both have performed strongly (palladium up 35% since the June 13 low) but last night both got hit lower in price in what looks very much like desperate shorting of a market where supply / demand is overtaking other ‘forces’. Already heavily shorted, the stage is set for a massive short squeeze. The Wall Street Journal reported there is only 16 weeks of supply left of palladium and said the prices could go to $1000/oz.