$GLD and $SLV Prices as of January 20 2020 @moneymetals
10:12 AM
January 20, 2020 – Gold and silver prices slid modestly lower last week, but the platinum group metals are on fire.
Rhodium closed the week at $9,000/oz - up nearly $1,000/oz. Platinum rose $43/oz and ended back above $1,000/oz for the first time in about 2 years.
And palladium gained $179/oz to close at $2,304/oz – only to rise $500 higher overnight and this morning!
A physical shortage – particularly for palladium – continues to drive the price in the London OTC market. Traders sold more metal than is currently available for delivery. They are trying to lease available bars now in order to deliver – but are having trouble enticing bar owners.
Lease rates for the metal spiked above 27% on Friday.
Picking up some Platinum American Eagles is a great way for investors to hold platinum, which has not yet skyrocketed. That means bullion banks, and others with obligations to deliver, are trying to borrow bars now and promising to return them later with a 20% premium. Spiking rates imply the bar owners are far from certain about the metal being returned.
Unfortunately for the people who sold too much paper palladium in the London OTC market, there is no provision for cash settlement. Bullion banks cannot simply issue a check for the value, they have to come up with the bars. And they have to come up with even more to cover the lease rate on bars they previously borrowed.
The exploding prices in rhodium and palladium are making it more difficult to make a market. Both metals are traded in small volumes, and liquidity is sparse. Retails dealers are nervous about carrying inventory and running into challenges when it comes to hedging. Bid/Ask spreads are extraordinarily wide.
Check out live precious metals prices here:
https://goo.gl/gy5XMA
Rhodium closed the week at $9,000/oz - up nearly $1,000/oz. Platinum rose $43/oz and ended back above $1,000/oz for the first time in about 2 years.
And palladium gained $179/oz to close at $2,304/oz – only to rise $500 higher overnight and this morning!
A physical shortage – particularly for palladium – continues to drive the price in the London OTC market. Traders sold more metal than is currently available for delivery. They are trying to lease available bars now in order to deliver – but are having trouble enticing bar owners.
Lease rates for the metal spiked above 27% on Friday.
Picking up some Platinum American Eagles is a great way for investors to hold platinum, which has not yet skyrocketed. That means bullion banks, and others with obligations to deliver, are trying to borrow bars now and promising to return them later with a 20% premium. Spiking rates imply the bar owners are far from certain about the metal being returned.
Unfortunately for the people who sold too much paper palladium in the London OTC market, there is no provision for cash settlement. Bullion banks cannot simply issue a check for the value, they have to come up with the bars. And they have to come up with even more to cover the lease rate on bars they previously borrowed.
The exploding prices in rhodium and palladium are making it more difficult to make a market. Both metals are traded in small volumes, and liquidity is sparse. Retails dealers are nervous about carrying inventory and running into challenges when it comes to hedging. Bid/Ask spreads are extraordinarily wide.
Check out live precious metals prices here:
https://goo.gl/gy5XMA
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