Palladium Prices Continues to Beat Platinum

Cassie Bastien

12/8/2017 10:05:09 AM

Daily Gold & Silver Market Report – 12/08/2017

Palladium hit a $1,022.70 per ounce Thursday, just under a 16-year high seen last week, with help from heightened automobile demand and an ongoing supply deficit, Reuters Reporter Renita D Young said. Meanwhile, Platinum hit a low of $887.50 per ounce, set for its largest weekly loss in nine months. According to Reuters data, which goes back to 1985, the Platinum-Palladium gap widened to nearly $120 per ounce, the steepest since April 2001. George Gero, managing director of RBC Wealth Management in New York, said, “There’s more need for Palladium, which cannot be reclaimed as easily or as often from junked automobiles as Platinum.” Keep in mind both Platinum and Palladium are used in catalytic converters in car exhaust systems. However, Young says Platinum is more heavily used in diesel vehicles, which have fallen out of favor since the Volkswagen AG emissions-rigging scandal of 2015.

Gold Charts Reach Lows from July

While Bitcoin and U.S. stocks both soared in the markets, Friday's Gold rates are reaching their lowest since July. MarketWatch Reporter Myra P. Saefong says the price of Gold has been pressured by “elevated risk appetite,” with the market “optimistic that some deal will be struck this week to avert a government shutdown ... and that a stimulative tax reform bill will reach [President Donald Trump's] desk by year-end,” said Peter Grant, chief market analyst with Gold broker USAGOLD.

Silver Value Continues to Drop

Reports from ScrapRegister say the price of Silver has “fallen through the key psychological level of $16 an ounce as the market remains near a five-month low.” As if that isn’t enough, Saxo Bank Head of Commodity Strategy Ole Hansen said Precious Metal investors “should prepare for further losses in the Silver market as the metal has struggled to gain significant investor attention in 2017.” Hansen also said Silver should continue underperforming Gold, expecting the Gold-to-Silver ratio to hit 80 before Silver buyers step in. 

At 11:04 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,250.00 Up $3.70
• Silver, $15.88  Down $0.01
• Platinum, $888.30  Down $8.20
• Palladium, $1,007.70 Up $6.30

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