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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

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Montross515
Feb 28, 2019 - 10:31pm

PALL

HAVING TROUBLE UNDERSTANDING THE COMMENT FROM CRAIG ABOUT NOT RECOMMENDING ANYONE To Buy PALLADIUM. DAVID JENSEN GIVES AN ARGUMENT FOR WHY ANY RATIONAL INVESTOR WOULD LOAD UP ON PALLADIUM,AND CRAIG SAYS HE IS NOT RECOMMENDING IT?..

EVEN IF YOU ONLY LOVE SILVER, THIS IS THE LEVERAGE TO USE AGAINST THE BANKS. LETS ALL GO FOR THE PALL ( an ETF) and crush the banking cartel.

Does Craig feel they deserve sone extra time to get their act together?

AngryCitizenOzymandias
Feb 28, 2019 - 10:11pm

Bank Reserves To Fluctuate With Gold?

Ozzy,

For a guy who says he has a tough time understanding, you sure know how to see thru the brinks wall and size up the situation. One would think that AG was about to rise somewhat dramatically.

Just sayin'

matt_
Feb 28, 2019 - 9:49pm
scoremore
Feb 28, 2019 - 9:23pm
Ozymandias
Feb 28, 2019 - 9:02pm

RE: Canary's ZH article above

I read this article and realize how little I know. If it had been written in ancient Greek I would probably have understood it as well. Something I can get a little closer to understanding is the new Basel rules allowing gold reserves to be carried on the books at 100%. Does this mean the banks reserves will fluctuate with the "price" of gold? ...as determined by what or who? ...and won't the banks want the price of gold to rise with a resulting increase in their reserves? Makes my head hurt.

scoremore
Feb 28, 2019 - 8:47pm

Thanks David & Craig!

Great interview!

mrcicMaestro
Feb 28, 2019 - 8:06pm

Dear Maestro

The irony of what you posted is amazing. Canada CB sold all their gold!!! Brilliantly timed by the CB. Now everyone is buying except them.

https://www.bankofcanada.ca/rates/related/international-reserves/

They've also made it illegal to deliver it via mail. Gotta love living here.

canary
Feb 28, 2019 - 7:13pm

Not sure if my interpretaion of that sentence is correct

Buy cheap gold, sell expensive ???...Keep gold for longer in 2019.

canary
Feb 28, 2019 - 7:02pm

I read the article about bonds selloff on ZH...

https://www.zerohedge.com/news/2019-02-28/what-behind-fixed-income-sello...

Too much of a technical language for my. Can somebody explain me the last sentence:

"Therefore, fund a cheap “Gold” put by selling an expensive “Red” put. In the new regime, you will like the extra duration of Golds."

Boggs
Feb 28, 2019 - 6:20pm

Cohen

Liberals/democrats/progressives/socialists are rarely held accountable, Cohen is now in the club. They are like the rays of the sun shining on a turd , they remain untainted and pure. When anyone else touches a turd there is an unending chorus of: “look! look!, that guys got shit on his fingers”.

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