Palladium spot prices rise on NYMEX
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Many PGM metals are dropping as speculators expect lower demand as the economy slows
by Heather Matthews – Exclusive to Palladium Investing News
Palladium and other precious metals commonly used in industrial applications, such as platinum and silver, showed small improvements today, although the strength of the US dollar has been affecting their market values in the recent past. There is still worry that the current credit crunch will slow down industrial production that calls for the use of palladium and other precious metals.
Traditionally, investors feel safe buying precious metals when faced with uncertain stock market conditions, but the latest crisis in world markets have caused a ripple of sell-offs as nervous investors fear monetary losses : even “safe” commodities such as precious metals have been subject to this downturn, and a strong dollar generally has a negative impact on precious metal values. Today, renewed investor confidence in precious metals showed a trend toward “safe” precious metals investing, and a movement away from investing in unstable stocks, bonds and various currencies.
Current spot prices for palladium on the New York Exchange have risen slightly this afternoon (Oct. 7. 08) to rest at a bid/ask of $197.00/205.00, an increase of 1.03 per cent over yesterday’s close. On the London Metal Exchange, palladium is currently trading at $366.00 per troy ounce.
There is still significant pessimism with regard to palladium futures over the next few months. Miguel Perez-Santalla, VP at Heraeus Precious Metals Mgmt., commented on the recent fears about precious metals used in industrial applications: “Don’t expect the platinum-group metals to make any major moves as there is still significant pressure from lack of industrial demand, which is the major consumer…palladium is also suffering with platinum.”
The Dow Jones showed a loss of another 75 points today, after losing 800 points on Monday, Oct. 6/08. The two-day decline of 875 points is a drastic dip that illustrates the perils of the current economic situation. The $700 billion bailout plan accepted by Congress has not yet assuaged doubts in the minds of investors, and the woes of investments firms and banks throughout Europe are adding fuel to the fire.
Palladium Company News – October 7/08
MMC Norilsk Nickel (NASDAQ:NILSY) – This company is one of the world’s leading producers of palladium and other precious metals: they are Russia’s largest gold producers. Today’s stock quote for Norilsk is $6.60 per share, with no change over yesterday’s closing price. In February, Norilsk were served with a $178 million lawsuit, outlining alleged pollution of Siberian rivers: they lost the suit, but are appealing the decision.
Anglo Platinum – (NQB:AGPPY) – Anglo stock plunged by 17.20 per cent today, trading at $58.00 per share, a decrease of $12.05 over yesterday’s close. This South African company is the world’s largest producer of platinum. They run seven mines, and also operate three smelters and two refineries in South Africa. In September/08, Anglo Platinum were accused of polluting the drinking water of citizens in Limpopo, the northernmost province of South Africa. Anglo cited a new water research report released on Sept. 4/08 as evidence that they are not responsible for the alleged pollution. Action Aid, an international watchdog group for environmental issues, lodged the complaint against Anglo Platinum.
Stillwater (NYSE:SWC) – This company is involved with all aspects of exploration, mining, and processing of precious and other metals at the J-M Reef site in Montana, USA. They are the only important resource for platinum-group metals in the United States. Their stock price is down 8.05 per cent on the NYSE today (Oct. 7/08), with a current share price of $4.00.
North American Palladium (TSX:PDL) – North American Palladium is Canada’s leading producer of palladium: they also produce nickel concentrate and other by-product metals. Their stock is down slightly today, with a share price of CDN $1.57, a decrease of 0.08 per cent over yesterday’s close. North American Palladium runs underground and open pit mining operations at Lac-Des-Iles in Thunder Bay, Ontario. The general worsening in Palladium values over the past few months has impacted stock quotes at NAP.
For more information on platinum spot price increases, please visit www.platinuminvestingnews.com.
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October 8th, 2008 at 9:05 am
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