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Thursday Conversation - David Jensen

Information about palladium that you need to hear.

37

There's been a lot of talk recently about palladium and, frankly, a lot of misinformation and guesswork from generalists and traders. What's going on in palladium is NOT a speculative bubble...far from it...and David Jensen joins us today to explain why.

David Jensen is a precious metals market analyst and the CEO of a private mining company. I've known David for several years and, back in 2017, he was the first person to alert us regarding the potential Bank-breaking qualities of the palladium market.

As you likely know by now, those Bank-breaking qualities have only been exacerbated in recent months. The global palladium market is experiencing a serious physical supply squeeze. How can we state this with certainty? Check the exorbitant lease rates for physical palladium in London as well as the backwardation of the futures board in New York.

Some have stated that the rise in palladium is simply a "speculative bubble". If that was the case, we'd be seeing a sharp rise in open interest and trading volume on Comex in New York. However, Comex palladium open interest was 29,000 contracts last November when price was $1100 and it remains near 29,000 contracts today with price near $1500. While average daily volume has grown to near 10,000 contracts, that's not an unprecedented level, either. See below:

What IS unprecedented is the threat that palladium now poses to The Banks' fractional reserve and digital derivative pricing scheme. The LBMA/Comex palladium market relies upon the same structure of leases, promissory notes, unallocated accounts and forward contracts that serve as the foundation of the LBMA/Comex gold and silver markets. Thus, should the LBMA/Comex palladium market be exposed for the fraud and sham that it is, could recognition of the scam in the LBMA/Comex precious metals markets be far behind?

We've written about this on several occasions, most recently here: https://www.sprottmoney.com/Blog/mr-palladium-punches-back-craig-hemke-0...

So, please take some time to give this podcast a thorough listen. The point is NOT to convince you to buy some palladium. However, what you DO need to consider are the potential long-term implications of a palladium market force majeure and collapse...and what this could mean for the identically-structured LBMA/Comex gold and silver markets.

TF

  37 Comments

TF Metals fan
Mar 1, 2019 - 9:38am

COT report delay

I wouldn't be surprised with the monkeys playing in the dark as much as possible before the COT resumes its regular schedule.

TF Metals fan
Mar 1, 2019 - 9:51am
Mickey
Mar 1, 2019 - 9:59am

Chef

one reason Trump is being attacked is he is doing things the liberals wanted to do and claim credit for.

The wall. trafficking, drugs, etc.

I have worked for people like Trump in the past way long ago. Their expectations were very high, and made one accountable-If you screwed up you were out, if you consistently performed above the rim, you were very well compensated and taken care of.

However, along the way you piss people (like Cohen and others) off.

Tough shit, get a thick skin.

I was told that back in 1976 early in my career after spending 7 years in public accounting where there was so much backstabbing that when you walked down a hall you did so with your back to the wall.

Trump is demanding unlike anybody else we have had in the oval office and I dare say unlike anybody else high up in govt fed state or local.

People cannot handle it.

and people are embarrassed he is doing things they could not do, or what they should of done, so they need to protect their turf.

If and when he gets around to narrowing cash flow deficits then I will be impressed and will get out of metals. That said, we now have a huge cash flow deficit from all the mismanagement for more than 50 years from just about everybody in charge of govt and are trending in a very wrong direction.

The mess does not get cleaned up overnight and the toughest thing is to get a change of mindset.

That's nearly impossible unless we close the borders so we do not have millions coming in expecting free this and that which we honestly cannot afford.

Said differently, the 150 million or so taxpayers cannot afford to support the other 7 billion in this world. However we have "flakes" like AOC, Harris, Booker, Gillibrand, Warren, Sanders, Beto et al and others who will make things worse.

Chicago is about to elect a black female mayor. Thats fine. However one was the County President and screwed up the county financially, and the other is to me an unknown and talks about fixing problems. We need serious people with leadership skills and the smarts to fix things. Not what we are getting.

BTW--Trumps people on his staff in WH are not exactly superstars. Perhaps the real superstars are not available, (meaning they do not want to do this).

On the other hand the the old leaders (Greenspan, Rubin and Summers, et all) can be defined if you watch Frontlines "The Warning" which deals with derivatives and dirty politics.

H8Fiat
Mar 1, 2019 - 11:12am

CME Glitch the other evening

Clearly CME changed their software to only allow sell orders. But on ZH the US Gov takes stolen Au from others. Odd since they can create more on paper.

Makes me wonder if the system collapse is in progress. I know all my SLV options are quickly becoming worthless for June

H8

TeamPlayer mrcic
Mar 2, 2019 - 1:36pm

Ability to mail gold using the Canadian mail system.

mrcic,

Regarding your comment on TF's palladium podcast.

Did you say it is NOT legal to use the public Canadian mail system to send/receive gold?

mrcic TeamPlayer
Mar 20, 2019 - 10:41pm

just noticed your reply - kinda late

just noticed your reply - kinda late. I was going back and looking at old posts.

See section 6.2 of this: https://www.canadapost.ca/tools/pg/manual/PGnonmail-e.asp#1421987

Other misc. prohibited items:

  • gold bullion, gold dust and non-manufactured precious metals unless mailed under an Agreement between Canada Post and the mailer
TeamPlayer
Apr 6, 2019 - 5:04pm

Canadian mailing laws

MRCIC,

Thanks for response and law cite. It's simply unbelievable! I could easily see the U.S. quietly implementing the same law. Anything to hamper the use of non-fiat money. Since they can't debase it and have complete control over it, they don't like it! (and that is stating it mildly).

-TeamPlayer

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