A Big Boost for the Palladium Market

Not to belabor my writings on palladium from earlier this week. But this chart tells a critical story.

Open interest in palladium on the Tokyo Commodity Exchange has gone upwardly vertical. In just five trading days, contracts are up nearly 30%.

This is all buying from "non-commercial customers". Meaning average investors looking for exposure to physical metal. (The TOCOM palladium contract used to be paper-settled only. But under recent changes buyers can now actually take delivery of metal.)

This follows on the heels of reports that Russian government sales of palladium from stockpile may be finished as of this year. A big boost for the Pd market.

I mentioned Tuesday that this could be a very big story. Apparently the Japanese think so too.

And the TOCOM market has been pretty good about picking up big stories.

Japanese non-commercials began buying silver in a big way during the last week of September. Since then, silver has become a "hot story", with myriad reports of big investors buying the metal to capitalize on the falling gold/silver ratio. In the last two weeks, the silver price has jumped over 10%, outperforming the 5% gain in gold.

Are Japanese buyers now getting on the "next train out of the station"?

Here's to being first in.

By. Dave Forest of Notela Resources