Palladium Price Premia

By: David Jensen | Fri, Jul 11, 2014
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This interview with Jay Taylor discusses price premia of $130 per oz. of palladium and $80 per oz. of platinum in Shanghai vs. the London/NY markets.

We also discuss how the paper metals markets can fail as real metal markets like Shanghai develop.

Given PGM price premia (PGM inventories aren't held by central banks) that we are seeing in Shanghai, as this moves to silver and gold as well, ultimately sellers of precious metals are going to migrate from London & NY to exchanges that deal in real metal and provide the maximum price. It appears that influence of paper markets is waning and there is a transition to real physical markets taking place.

A palladium mining company will have a hard time explaining to shareholders why they are selling through or using LPPM / NY Comex benchmark pricing when they can, for instance, obtain $130/oz more in Shanghai for palladium.

We also touch on the fact that the discussion re. a new Gold Daily Fixing price is a straw horse discussion as it is not the fixing mechanism in London that is broken. Instead, witness the fact that Goldcore.com noted that in the summer of 2013, there was 280 million oz. of gold traded on the LBMA per day which is 850x the daily global gold mine production rate. It is not the fix that is broken. It is that London and NY are digital instrument markets that trade pretend gold, silver, etc. to manipulate global gold, silver, platinum, and palladium prices.

Jay Taylor interview with David Jensen MP3

Length: 30 mins 46 seconds

 


 

Author: David Jensen

David B. Jensen, P.Eng., LL.B., MBA
Vancouver, BC
Canada

David Jensen

David Jensen, P.Eng., LL.B., MBA, is a Professional Engineer with a degree in Engineering from the University of Waterloo in Canada (1987). He worked through 1993 on the F-5 Fighter Overhaul program and the Bombardier Regional Jet programs. Mr. Jensen then graduated with a LL.B. degree in corporate and commercial law from the University of Calgary (1997) and an MBA from Univ. of B.C., majoring in Logistics and Supply Chain Management (1999). Returning first to aviation then, after reading Austrian School Economics, Mr. Jensen transitioned to the mining industry from the aerospace industry in 2004 first through his mining industry consultancy, then as Vice President of Corporate Development for Western Copper Corp., and most recently as President and COO of Skyline Gold. Mr. Jensen currently serves as President and COO of a private mining company and provides strategic, operational, risk assessment, and precious metals consulting services through his consultancy, Jensen Strategic.

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