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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

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lakedweller2
Mar 1, 2019 - 9:04am

Yields

It is just revised criminal alternatives to inject methods of transfer of wealth and preclude an equal playing field and free markets. The Greatest Thefts of all time continue with the blessing of politicians and regulators...just another day with another face.

Mar 1, 2019 - 8:44am

A deliberate effort being made to pump yields higher?

How many times have you heard me state that The Fed CANNOT hike the ff rate again if it means that doing so would invert the yield curve?

Well, check this curious recent action in the bond market. Yields spike every day at the same time regardless of the economic news...which was terrible again today.

J Siefertcanary
Mar 1, 2019 - 4:44am

@ Canary

"When I wake up and see gold still above $1300...it will be a miracle."

Better pinch yourself first, you may just be dreaming. LOL

J Siefert
Mar 1, 2019 - 4:42am

Great talk with David Jenson, thanks.

This YouTube from the Nefarium about Catholics and other elites 'dilly dallying' with children may interest some of you.

NEWS AND VIEWS FROM THE NEFARIUM FEB 28 2019

PS Regarding palladium what is not being mentioned much is that palladium is an inferior metal to platinum. Both are cabalist metals so if the price of palladium rises significantly one can expect that eventually some vehicle manufacturers will make design changes and move to platinum...with resultant price changes to that metal.

canary
Mar 1, 2019 - 2:16am

Last look at the charts...

When I wake up and see gold still above $1300...it will be a miracle.

Good night.

hindsight101
Mar 1, 2019 - 1:54am

John Rubino - the bullish scenario

Authored by John Rubino via DollarCollapse.com,

https://www.zerohedge.com/news/2019-02-28/remember-fed-hasnt-actually-do...

The PM bull case, the last paragraph is the point....

"A simple way to gauge our place on this path is the price of gold. When Act Two (gradually falling interest rates, modest QE) is implemented, gold should bounce back up to around $2,000/oz. Once Act Three (massive, permanent QE, NIRP, bailouts for bankrupt states and cities) is in full swing, gold should pass $5,000 on its way to infinity."

Currently we have slightly rising long term interest rates, still QT and falling gold and silver.....breaking down gold and silver....One needs patience and deep pockets.

Key Economic Events Week of 9/21

9/21 8:00 ET Goon Kaplan
9/21 10:00 ET Goon Evans
9/21 Noon ET Goon Brainard
9/21 6:00 pm ET Goon Williams & Goon Bostic
9/22 10:30 ET Chief Goon Powell on Capitol Hill
9/22 Noon ET Goon Barkin
9/22 3:00 pm ET Goon Bostic again
9/23 9:00 ET Goon Mester
9/23 9:45 ET Markit flash PMIs for September
9/23 10:00 ET Chief Goon Powell on Capitol Hill
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9/25 8:30 ET Durable Goods
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matt_
Mar 1, 2019 - 12:42am

10 year monthly platinum chart

The platinum price is bumping up against this channel right now:

I hope David Jensen is correct in predicting platinum will follow palladium higher, but I wouldn't mind if prices stayed low for a year or two so I can buy more.

matt_
Mar 1, 2019 - 12:30am

PGM markets

Platinum demand in 2018:

  • 39% autocatalyst
  • 30% jewellrey
  • 30% industrial
  • 1% investment

Palladium demand in 2018:

  • 86% autocatalyst
  • 2% jewellrey
  • 18% industrial
  • -6% investment

There has been a negative investment demand for palladium for several years due to "profit taking from ETF holders". In other words, ETF holdings have been raided to try and fill the supply deficit. In 2014, palladium ETFs held almost 3 million ounces. At the end of 2018, ETFs held 730 thousand ounces of palladium. The ETF well has almost run dry.

Oddly, it was reported that a lot of "profit taking" came from palladium ETF investors in South Africa. It was attributed to the favorable exchange rate between the South African Rand and the U.S. Dollar. Isn't it also an odd coincidence that South Africa holds huge palladium mining reserves? There wouldn't be some sort of connection, would there be?

Source:

February 2019 PGM Market Report

OOOBuck
Feb 28, 2019 - 11:33pm

Palladium has no history as a store of wealth

As I understand it, primary use for palladium is in auto catalytic converters. I've read where 90% of palladium used in these mechanisms is recoverable (on average, about 3 grams). Apparently, it's also cheaper to suck it out of these old converters and re-refine it than it is to mine it. Add to that an increasing interest in electric cars (which do not have catalytic converters) and we could be looking at the current deficit in the market as being fairly short lived. In the meantime however, it appears the sky's the limit.

Long term, gold and silver continue as a better store of wealth.

cyclemadman
Feb 28, 2019 - 11:04pm

PALL Comment

I think Palladium doesn't have thousands of years of history as a monetary metal like gold and silver have. Yes, it is rare, but it's main use is as a commodity in catalytic converters.

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Key Economic Events Week of 9/21

9/21 8:00 ET Goon Kaplan
9/21 10:00 ET Goon Evans
9/21 Noon ET Goon Brainard
9/21 6:00 pm ET Goon Williams & Goon Bostic
9/22 10:30 ET Chief Goon Powell on Capitol Hill
9/22 Noon ET Goon Barkin
9/22 3:00 pm ET Goon Bostic again
9/23 9:00 ET Goon Mester
9/23 9:45 ET Markit flash PMIs for September
9/23 10:00 ET Chief Goon Powell on Capitol Hill
9/23 11:00 ET Goon Evans again
9/23 Noon ET Goon Rosengren
9/24 1:00 pm ET Goon Bostic #3
9/24 2:00 pm ET Goon Quarles
9/24 10:00 ET Chief Goon Powell on Capitol Hill
9/24 Noon ET Goon Bullard
9/24 1:00 pm ET Goon Barkin again & Goon Evans #3
9/24 2:00 pm ET Goon Bostic #4
9/25 8:30 ET Durable Goods
9/25 11:00 ET Goon Evans #4
9/25 3:00 pm ET Goon Williams again

Key Economic Events Week of 9/14

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8/10 10:00 ET Job openings
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Key Economic Events Week of 8/3

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Key Economic Events Week of 7/27

7/27 8:30 ET Durable Goods
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7/21 8:30 ET Chicago Fed
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