Breaking News
LAST CHANCE for Cyber Monday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Platinum, Palladium and Silver: Not So Precious Anymore

CommoditiesMar 16, 2020 06:15PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Platinum, Palladium and Silver: Not So Precious Anymore

(Bloomberg) -- Precious metals that are heavily used in industrial production joined the massive selloff across financial markets that saw copper tumbling as investors’ risk appetite weakened.

Platinum, used to curb emissions from diesel-fueled vehicles, slumped the most on record, while silver touched the lowest in more than a decade. Palladium, which generated the highest return among major commodities last year, headed for its biggest six-session loss in records going back to 1993. Copper, a barometer of global growth, plunged to the lowest in more than three years.

China posted a historic economic slump in the first two months of the year -- which was even larger than analysts feared. That offset support arising from a raft of stimulus measures rolled out by central banks across the world. Stock markets resumed their slide after Friday’s bounce, with miners including Glencore (LON:GLEN) Plc, BHP Billiton (LON:BHPB) and Anglo American (LON:AAL) Plc plunging in London. All the main base metals traded lower.

“The short-term outlook for the metals market is only getting gloomier,” Wenyu Yao, senior commodities strategist at ING Bank, said in an emailed note. “The supply growth of some metals hasn’t slowed as many expected, and the large inventory overhang is just a mirror of how bad demand looks.”

The plunge in Chinese industrial output, retail sales and fixed-asset investment leaves the country on course for its first quarterly economic contraction since comparable data began in 1989.

“We have seen demand shocks across the industrial metals complex before, but this time there needs to be an understanding that a return to normalcy could be slower,” said Michael Cuoco, head of fund sales for metals and bulks at INTL FCStone. “Everyone received the script last week and the negative news cycle only continued over the weekend.”

Investors are exiting risk assets amid uncertainty whether policy responses would be enough to counter the mounting economic toll from the global pandemic.

  • Platinum fell as much as 26% to $564 an ounce, the biggest intraday slump for spot prices in data going back to 1987.
    • On the New York Mercantile Exchange, futures for delivery in April closed 12% lower at $657.70, the biggest slump for a most-active contract on records dating to 1986
  • Palladium extended its slide, taking losses in the past six sessions to 36%. The metal fell as much as 18% to $1,495 an ounce on Monday.
    • In the futures market, the metal for June delivery settled 0.3% higher after plunging as much as 10%
  • Silver, used in solar panels, tumbled as much as 20% to $11.8053 an ounce, the lowest spot price since January 2009.
  • Copper futures for May delivery fell as much as 5.2% to $2.335 a pound. The metal used in construction, cars and electronic devices, settled at $2.3925, the lowest close for a most-active contract since early 2016.
  • On the London Metal Exchange, copper, aluminum, zinc, nickel, lead and tin all fell.

Platinum, Palladium and Silver: Not So Precious Anymore

Related Articles

Gold Up, Boosted by Omicron Concerns
Gold Up, Boosted by Omicron Concerns By - Nov 28, 2021 1

By Gina Lee – Gold was up on Monday morning in Asia, with concerns over the impact of the possibly vaccine-resistant omicron COVID-19 variant giving the safe-haven...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email