Metals Minute 133: Time to Accumulate
For the week, we have gold down 1.7% to $1,726, silver off 4.4% to $18.43, platinum down 2.9% to $864, and palladium up 3.1% to $2,120.
A year ago today, we have gold down 4.8%, silver off 23%, and platinum and palladium down 15%. YTD, we have palladium leading the way up 16%, with gold following at -4%.
Palladium is higher partly due to geopolitical concerns about supply, with over 45% produced in Russia. Sanctions have created issues with availability.
Keep in mind there is a considerable difference between the “spot” price for metals such as gold and silver and the price paid to secure physical metals. This difference is more significant than average over the last 20-30 years and has been consistent over the last year. Even with new metals exchanges and markets developing worldwide, this divergence may continue for another year or 2.
Physical metal is in high demand, with large paper sellers trying to tamp down metal prices while scooping up available supply. For those able to do so, it is an excellent opportunity to add to the portfolio.