Here is my analysis on palladium. Although the raw material is very important for batteries of electric cars, it has now come in a resistance area, where I think it will not be so easy to shoot beyond. First, the red C = red A and the bracketed C is 1.618 * the length of the bracketed A. That would be a harmonious conclusion of the upward movement and now it would be advisable to secure profits. As a producer of palladium, I would now sell 50% of my annual production on the futures market for the next 5 years to secure cash flow for the long term. The other 50% of annual production I consider a reserve if the price continues to rise. If, as expected, a top is formed, then I would sell another 25% of the production over the long term. However, it is important to be quick, because the competitors will then do the same and then the price would develop along the black arrow.
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Wars das schon? StopLoss nachziehen und Gewinne mitnehmen.
Palladium isn’t used in electric vehicle batteries. Palladium is used in catalytic converters for vehicles. Mainly petrol powered vehicles and to a lesser extent diesels which use a more prominent amount of Platinum.
Several aspects have currently been in play that directly affects the price of Palladium.
a) Demend for Palladium has outstripped production by on average 600,000 once’s per year for the last 6years.
b) ETFs do not have enough stock left to keep releasing Palladium into the market to fill the deficit (having already released 3,000,000 ounces).
c) The generic stance that diesels are dirtier than petrol engines has recently generated a shift in new car production from a majority in diesels to a majority in petrols thus increasing the Palladium deficit. This shift is likely to increase.
d) The new Chinese emission changes that came into play at the start of the year means more demand on Palladium to ensure compliance.
e) The new Palladium mines coming online are expected to roughly balance the production being lost by the Palladium mines closing down.
f) The Russian stockpile of Palladium (although unknown how large) is also believed to be running dry. Which may increase the deficit more.
g) An alternative catalytic converter that meets the emissions standard is expected to take ~2 years to design/test/certify before it can have any impact on the Palladium deficit.
Although there will be resistance lines along the way, which may cause Palladium to pause or stutter. This babies going to go sky high which is why $2000 in the near term is a very real probability.
Palladium isn’t used in electric vehicle batteries. Palladium is used in catalytic converters for vehicles. Mainly petrol powered vehicles and to a lesser extent diesels which use a more prominent amount of Platinum.
Several aspects have currently been in play that directly affects the price of Palladium.
a) Demend for Palladium has outstripped production by on average 600,000 once’s per year for the last 6years.
b) ETFs do not have enough stock left to keep releasing Palladium into the market to fill the deficit (having already released 3,000,000 ounces).
c) The generic stance that diesels are dirtier than petrol engines has recently generated a shift in new car production from a majority in diesels to a majority in petrols thus increasing the Palladium deficit. This shift is likely to increase.
d) The new Chinese emission changes that came into play at the start of the year means more demand on Palladium to ensure compliance.
e) The new Palladium mines coming online are expected to roughly balance the production being lost by the Palladium mines closing down.
f) The Russian stockpile of Palladium (although unknown how large) is also believed to be running dry. Which may increase the deficit more.
g) An alternative catalytic converter that meets the emissions standard is expected to take ~2 years to design/test/certify before it can have any impact on the Palladium deficit.
Although there will be resistance lines along the way, which may cause Palladium to pause or stutter. This babies going to go sky high which is why $2000 in the near term is a very real probability.