Palladium Spot Prices Tumble By 3.14 Percent As Congress Debates Bailout
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Current Market Climate
The proposed bailout of bad debts by the U.S. Treasury is being hotly debated in Congress: this debate is affecting commodity spot prices and stock market share prices all over the world. As government officials ponder the wisdom of assisting banks and investment houses by spending over 700 billion dollars purchasing bad debts from mortgage loans and other faulty investments, stock market shareholders are nervous and continuing to unload their commodities and shares, causing price drops.
While there are many analysts who feel that the proposed 700 billion dollar deal is counterproductive, more still believe that failure by the U.S. government to intervene and assist failing banks will result in further disaster in the stock market. A large-scale intervention from the U.S. Treasury, such as the one being debated at present, is the largest assistance scheme since the Great Depression.
Democrats are up in arms about the ramifications of this massive proposed expenditure, and the issue is drawing political fire very close to the American national election. Republicans, including President George W. Bush, are adamant that there is no alternative to the bailout. “We’re going to work with Congress to get a bill done quickly,” the President commented. “This is a big package because it was a big problem.”
Harry Reid, the Senate Majority Leader, had this to say about intervention in the stock market and banking crisis: “We cannot allow ourselves to be in denial about the threat now facing the world economy. From all indications, that threat is real, and the consequences of inaction could be catastrophic. Every single American has a stake in preventing a global financial meltdown.”
Palladium Spot Prices as of September 23/2008
In New York, Palladium spot prices plunged by 3.14 percent, from yesterday’s high of 255.00 per troy ounce, to today’s current bid/ask of 247.00. Many investors are unloading commodities as the market tumbles once again. Until the government approves the bailout plan, and decides which banks and firms will benefit, this pattern will likely continue. Gold and platinum prices are also dropping as oil spot prices lower, after a brief surge in the past few days. Palladium and platinum are both used to produce automotive parts, and higher oil prices tend to reflect on palladium spot prices in world markets.
Palladium Company News
North American Palladium Ltd. (TSX: PDL): The downward trend in commodities trading has impacted North American Palladium’s stock. On the Toronto Stock Exchange, stock plummeted by 6.35 percent, as shares sold for 2.95. North American Palladium’s stock high for the past 52 weeks was 9.45 per share.
Stillwater: On the NASDAQ (SWC), Stillwater stock held steady, with only a slight decrease from yesterday’s closing bid/ask. Stock is currently trading at $7.24 USD, from yesterday’s closing price of 7.25 per share. Stillwater is the only North American producer of platinum and palladium, which is generally mined in Russia or South Africa.
Anglo Platinum: Today, a news release from Anglo Platinum announced the resignation of Non-Executive Director Philip Blum: he will be replaced by Kuseni Douglas Dlamini. Over-the-counter (OTC) Anglo Platinum stock is currently trading at 109.50 USD, with no change in price from yesterday’s figures.
Aquarius Platinum: This South African company mines palladium on the Western Limb of the Bushveldt development in Marikana, South Africa. Its shares on currently down 8.95 percent on the London Stock Exchange, with a current share price of 3.46. (LSX:AQP): Currency, GBX, September 23, 2008 prices.
For information on other commodity values in the current stock market climate, please refer to www.leadinvestingnews.com
Tags: anglo, bad debts, bailout, banking crisis, commodities, commodity spot prices, dollar deal, financial meltdown, gold, great depression, investment, investment houses, investors, market climate, mortgage loans, North American Palladium, palladium, platinum, precious metals, spot, stock market crash, u s treasury, US Treasury, world economy
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September 30th, 2008 at 10:27 am
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