• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 7 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 11 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 14 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 1 hour Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 49 mins Is $60/Bbl WTI still considered a break even for Shale Oil
  • 6 hours Old - New Kim: Nuclear Negotiations With U. S. Will Never Resume Unless Washington Changes Its Position
  • 3 hours Theresa May to Step Down
  • 2 hours IMO 2020 could create fierce competition for scarce water resources
  • 5 hours India After Elections: Economy And Hindu Are The First Modi’s Challenges
  • 2 hours IMO2020 To scrub or not to scrub
  • 2 hours Devastating Sanctions: Iran and Venezuela hurting
  • 7 hours Total nonsense in climate debate
  • 11 hours Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
  • 4 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
  • 4 hours Apple Boycott in China
  • 227 days Epic Fail as Solar Crashes and Wind Refuses to Blow

Breaking News:

Tesla Shares Rebound On Leaked Musk Email

Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

Is This $2 Billion Buy A Sign Of Opportunity In Palladium?

Critical item for the global platinum-group metals market this week. Suggesting that big changes may be ahead for buying and pricing in this space.

Major Russian PGM miner Norilsk said in an interview that it is creating an investment fund to buy palladium. Looking to consolidate much of the world’s privately-held stock of the metal under one umbrella.

Norilsk’s head of strategic marketing, Anton Berlin, told Bloomberg that the planned palladium fund will be of significant scale. With managers looking to buy up to $2 billion worth of the metal. Related: Is Private Equity Distorting E&P Asset Prices?

Berlin said some of this supply will be bought from the Russian central bank. While the remainder will be purchased from hedge funds and other holders.

The plan looks to more than just pie-in-the-sky thinking. With Berlin saying that the fund has already secured $1.6 billion in loan funding with an “international bank” in order to make its palladium purchases.

Norilsk itself is planning to contribute $200 million to the fund — with the company’s billionaire CEO Vladimir Potanin also participating privately. Potanin also said that Russian business magnate Roman Abramovich may contribute. Related: Top 12 Media Myths On Oil Prices

The move would be an interesting one for the PGM market — with the stated aim being to bring more transparency to palladium stockpile levels. Currently, above-ground stocks have proved difficult to assess. Leading to uncertainty about the global supply and demand picture.

If Norilsk does succeed in bringing $2 billion worth of palladium under one roof, investors would likely have a much clearer idea of what’s going on with supply. Potentially revealing that things are tighter than expected in this market. Related: Could We Finally Have A Meaningful Oil Price Rally?

That’s exactly the sort of scenario Norilsk is anticipating. With the company telling Bloomberg that it expects to see PGM production from major mining centers like Africa decline over the coming years.

If such a scenario materializes, the formation of this palladium fund could turn out to be a pivotal moment for the PGM market. Perhaps signaling an opportunity in the making here.

Here’s to funding change,

Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News