Across The Board

Palladium and platinum lead the charge higher.

89
Fri, Jan 17, 2020 - 10:30am

It is another good day....and strong start to 2020...for all metals, not just gold and silver, as the rallies in platinum and palladium continue. And you know what they say about rising tides and boats.

Let's just dive right in. Here's the board as I begin typing:

Obviously, the key standouts are platinum and palladium. Let's start with platinum as it's probably the most important for now. And why? Because platinum has been beaten down for so long that any signs of life are encouraging for the entire sector. Additionally and as we pointed out a few days ago, you can't help but notice the similarities between the charts of platinum and silver...both short and long term.

Let's watch to see where old "Sylvia" finishes the week. For the front-month Apr20 contract, it looks like $1030 or so is a level to watch.

And here's another look at the plat-silv overlay:

Turning to palladium...I've not seen an update from David Jensen yet on today's London lease rates but yesterday they hit 21%! This is undoubtedly a sign of physical stress and this physical stress is driving price. We've written about this on multiple occasions over the past two years with the theme being that perhaps...PERHAPS...palladium could be the "magic bullet" that draws attention to, and maybe even brings down, the entire over-levered, digital derivative pricing scheme.

Here's David Jensen's tweet update from yesterday:

ALERT NOTE:

London #Palladium lease rates big step move up today:

1 Mo. 21.67%
3-Mo. 17.34%
6-Mo. 12.12%
1-Yr. 8.45%

Supply is breaking.#fintwit #oott #market #stocks #finance #Crypto #BTC #gold #palladium #oil #wti #platinum #commodities

— David Jensen (@RealDavidJensen) January 16, 2020

A word about those lease rates....That's an annualized rate and the leases are repayable in METAL. So, for the sake of simplicity, a 21% one-month lease rate is roughly 2% for the month. This means that if I have to borrow 1,000 ounces from you for my immediate delivery needs, I have to repay you 1,020 ounces a month from now. Can you see how this can spiral out of control at some point?

However, this does NOT mean that the system is breaking RIGHT NOW. This also does NOT mean that palladium is going straight up to $5000/oz. My sole interest here is the supply drain and run on physical. Can it eventually draw attention to the similarly structured LBMA/Comex precious metals markets. We'll see. For now, this is sure moving fast. UP over 6% today!

In economic news today, US housing starts inexplicable soared to their best levels in years...all while consumer confidence slipped and industrial production continues to collapse. NET/NET...no real impact on the PMs.

OK, I am supposed to be on vacation today so it's time to wrap up. Eric was also supposed to be on vacation today but we still took time to record the usual weekly wrap-up. Here's the link: https://soundcloud.com/sprottmoney/sprott-money-news-weekly-wrap-up-11720

Below is Eric's fish that he mentions in the call. Also below is my view as I recorded the call.

As I close, I've got CDG back to $1555, which places it down $6 on the week. CDS has been washed all the way back to $17.95 after a pre-Comex high of $18.18. That's disgusting. What a frigging scam these "markets" are. I think I'd better take the rest of the day off before my head explodes. Here's the board as I close:

Please be sure to check back later today for another special podcast with an exploration CEO. And then check back tomorrow sometime for a new thread with the weekly charts and CoTs. Have a great day!

TF

About the Author

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turd [at] tfmetalsreport [dot] com ()

  89 Comments

connie
Jan 17, 2020 - 10:36am

Gold!

Again.

allenb
Jan 17, 2020 - 10:38am

More Gammon with your eggs?

Recession Watch: Terrifying New Data Uncovered! (BE PREPARED)
c1092227
Jan 17, 2020 - 10:42am

fascistic markets run by a fascistic western empire

Used to the manipulation, but today is one of those days which makes me very angry.

When silver was still above 18 earlier, first majestic stock was already down 4%. Normal market forces, sure!

Orange
Jan 17, 2020 - 10:42am
matt_
Jan 17, 2020 - 10:56am

This is what passes for an economist today

This article was written by an economics professor who is a former president of the Federal Reserve bank of Minneapolis:

https://www.bloomberg.com/opinion/articles/2020-01-16/the-u-s-government...

The gist of the article is that the government can afford any level of debt and it will never be inflationary. It is stupefying in its idiocy.

uni59
Jan 17, 2020 - 10:57am

sicnf

Turd next week can you ask Eric about sokoman minerals corp he was talking it up last spring i believe it was and i bought a small stake and its been dwn ever since . does anyone else know much about this stock ? is it worth doubleing down? thanks UNI

mavens
Jan 17, 2020 - 10:57am

I posted this in the last thread....

...wondering if anyone has an answer:

Maybe I missed it when the new site was rolled out last year, but is it possible for me to customize what I see on the Turdville TFMR Tracker? This thing:

I would like to add Palladium and Platinum, and, who knows, maybe some other stuff too if possible...

YukonCornelius
Jan 17, 2020 - 11:05am

Action in miners is REALLY PISSING ME OFF TODAY

All I ask is a fair shake. For God sake send these people to prison.

Angry Chef
Jan 17, 2020 - 11:12am

What The HELL Is Going On?

Had to copy this from the SGT Report as Karl's site would not allow me access. He brings up some good points...

https://www.sgtreport.com/2020/01/what-the-hell-is-going-on/

Island Teal
Jan 17, 2020 - 11:17am

8th or 9th

So much for those AG and KL options​​​​​​

Have a good weekend too

Key Economic Events Week of 2/17

2/18 8:30 ET Empire St Manu Idx
2/19 8:30 ET Producer Price Idx
2/19 8:30 ET Housing Starts & Bldg Perms
2/19 2:00 ET January FOMC minutes
2/20 8:30 ET Philly Fed
2/21 Fed Goons all day at Chicago Conf.
2/21 9:45 ET Markit flash Feb PMIs

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Key Economic Events Week of 2/17

2/18 8:30 ET Empire St Manu Idx
2/19 8:30 ET Producer Price Idx
2/19 8:30 ET Housing Starts & Bldg Perms
2/19 2:00 ET January FOMC minutes
2/20 8:30 ET Philly Fed
2/21 Fed Goons all day at Chicago Conf.
2/21 9:45 ET Markit flash Feb PMIs

Key Economic Events Week of 2/10

2/11 10:00 ET Job Openings
2/11 10:00 ET CGP Hump-Hawk House
2/12 10:00 ET CGP Hump-Hawk Senate
2/13 8:30 ET CPI
2/14 8:30 ET Retail Sales
2/14 9:15 ET Cap Ute & Ind Prod
2/14 10:00 ET Business Inventories

Key Economic Events Week of 2/3

2/4 10:00 ET Factory Orders
2/5 8:15 ET ADP Employment
2/5 9:45 ET Markit Service PMI
2/5 10:00 ET ISM Service PMI
2/6 8:30 ET Productivity & Unit Labor Costs
2/7 8:30 ET BLSBS
2/7 10:00 ET Wholesale Inventories

Key Economic Events Week of 1/27

1/28 8:30 ET Durable Goods
1/28 10:00 ET Consumer Confidence
1/29 10:00 ET Pending Home Sales
1/29 2:00 pm ET FOMC Fedlines
1/29 2:30 pm ET Powell presser
1/30 8:30 ET Q4 GDP first guess
1/31 8:30 ET Pers Inc and Spending
1/31 9:45 ET Chicago PMI
2/2 10:00 pm ET Chiefs win SB LIV

Key Economic Events Week of 1/13

1/14 8:30 ET CPI
1/14 9:00 ET Goon Williams
1/15 8:30 ET PPI and Empire Fed
1/16 8:30 ET Retail Sales and Philly Fed
1/17 8:30 ET Housing Starts
1/17 9:15 Et Cap Ute and Ind Prod

Key Economic Events Week of 1/6

1/7 8:30 ET US trade deficit
1/7 10:00 ET ISM Services PMI
1/7 10:00 ET Factory Orders
1/8 8:15 ET ADP employment
1/9 8:00 ET Goon Chlamydia speech
1/9 1:20 ET Goon Evans 2:00 ET Goon Bullard
1/10 8:30 ET BLSBS
1/10 10:00 ET Wholesale Inventories

Key Economic Events Week of 12/16

12/16 8:30 ET Empire State Manu Idx
12/16 9:45 ET Markit flash PMIs Dec
12/17 8:30 ET Housing Starts and Bldg Perms
12/17 9:15 ET Cap Ute and Ind Prod
12/19 8:30 ET Philly Fed
12/20 8:30 ET Final guess Q3 GDP
12/20 10:00 ET Pers Inc and Spending
12/20 10:00 ET Core Inflation

Key Economic Events Week of 12/9

12/10 8:30 ET Productivity and Unit Labor Costs
12/11 8:30 ET CPI
12/11 2:00 pm ET FOMC fedlines
12/11 2:30 pm ET CGP presser
12/12 8:30 ET PPI
12/13 8:30 ET Retail Sales
12/13 10:00 ET Business Inventories
12/13 11:00 ET Goon Williams speech

Key Economic Events Week of 12/2

12/2 9:45 ET Markit Manu PMI
12/2 10:00 ET ISM Manu PMI
12/2 10:00 ET Construction Spending
12/4 9:45 ET Markit Services PMI
12/4 10:00 ET ISM Services PMI
12/5 8:30 ET Trade Deficit
12/5 10:00 ET Factory Orders
12/6 8:30 ET BLSBS
12/6 10:00 ET Wholesale Inventories

Key Economic Events Week of 11/25

11/25 8:30 ET Chicago Fed Nat'l Idx
11/25 7:00 pm ET CGP speech
11/26 8:30 ET Advance Trade
11/26 9:00 ET Case-Shiller home prices
11/26 10:00 ET New home sales
11/26 10:00 ET Consumer Confidence
11/27 8:30 ET Q3 GDP 2nd guess
11/27 8:30 ET Durable Goods
11/27 9:45 ET Chicago PMI
11/27 10:00 ET Pers Inc & Cons Spndg
11/27 10:00 ET Core inflation
11/27 2:00 pm ET Beige Book

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