International Investing

Electricity supply problems in South Africa are exacerbating supply problems for this precious white metal. Great news for those long Palladium, but awful news for GM and the other auto manufactures:

The platinum and palladium mines are shuttering in, fearful of sending miners miles under-ground and at the mercy of “load shed” power supplies. This problem is not going to go away soon… perhaps not for years.

This is a huge problem for the auto industry which is so manifestly dependent upon both platinum and palladium for the catalytic converters needed to meet environmental regulations. We’ve no idea what GM, or Toyota, or BMW, or Ford, or any of the major auto producers have done regarding supplies, but price shall not matter soon; mere availability will trump all else! Buy palladium/sell GM?!