SPONSOR: New Age Metals Inc. The company owns one of North America’s largest primary platinum group metals deposits in Sudbury, Canada. The company has an updated NI 43-101 Mineral Resource Estimate of 2,867,000 PdEq Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces Inferred. Learn More.
PGM: Platinum to rally in the near-term, palladium stays range-bounded
- The combination of firming commodity and investment demand could create the set-up for a recovery in platinum prices, most notably in 2021
- For palladium, spot prices will be supported as industrial demand recovers and the industry works through built-up inventories, amid a structural shortage which will remain in place for years to come
By FX Street
Strategists at TD Securities see room for platinum prices to rally in the near-term, before the market rebalances and contains prices while palladium is set to remain range-bound before the demand retrieves.
Key quotes
“The combination of firming commodity and investment demand could create the set-up for a recovery in platinum prices, most notably in 2021. For palladium, spot prices will be supported as industrial demand recovers and the industry works through built-up inventories, amid a structural shortage which will remain in place for years to come.â€
“The palladium market should benefit from shrinking lease rates as metal scarcity is temporarily shelved by collapsing demand. Notwithstanding, we expect palladium to remain in a structural shortage in the coming years, suggesting we may not have seen the end of sky-high lease rates.â€
“We ultimately expect the unprecedented scale of central bank stimulus to drive a multi-year bull market in precious metals, as capital seeks to shelter itself from monetary inflation. As global economies recover from the pandemic, we expect investment demand to rebound and demand for industrial-precious metals, in particular, to rise substantially.â€
Source: https://www.forexcrunch.com/pgm-platinum-to-rally-in-the-near-term-palladium-stays-range-bounded-tds/
Tags: CSE, palladium, PGM, PGM Demand, Pine Zone, River Valley Project