Venture: The Short Squeeze in Palladium
Issue 45;
The bull market in precious metals continues. In recent weeks, gold has shrugged off both rising bond yields and a recovery in the dollar. This is a change of behaviour from the years past, as investors come to realise they are underweight in a sector they need to own. As governments keep spending, preventing inflation from returning to target, the metals have found their bid. Gold has a limited supply, but so does silver, platinum and palladium.
The palladium market is a good example, as it is back in deficit, meaning demand exceeds supply. This isn’t new, but it has in the past been support for the price. This is happening as the auto industry shifts to EVs, but perhaps this will take longer than we thought, meaning the low expectations are overdone.
The Palladium Deficit
I have identified an opportunity to capture what I believe could be one hell of a squeeze.
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