Norilsk in Talks to Buy Palladium From Russia’s Central Bank

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Russia’s Norilsk Nickel and a group of private investors are in talks to buy palladium worth up to $2 billion from the country’s central bank, Norilsk’s chief executive and co-owner Vladimir Potanin said.

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Potanin, Russia’s eighth richest man, said he was so convinced the market will be in a supply deficit that he would put his own money into palladium if the company ruled there was no conflict of interest, Reuters reported.

If the deal is agreed, Norilsk would be able to guarantee the availability of stock for long-term customers and to increase market transparency, Potanin said. Payment could involve a swap for platinum or cash.

“We are interested in buying palladium, in some form, which is now owned by the government, primarily by the central bank,” Potanin said in an interview at the Reuters Russia Investment Summit. Norilsk is the world’s largest nickel and palladium producer.

The volume in the central bank is a Russian state secret.

The price of Chinese silver declined 0.4% to CNY 3,885 ($633.17) per kilogram. At INR 39,472 ($646.90), the price of Indian silver finished the market day up 0.2% per kilogram. The price of Japanese silver remained essentially flat at JPY 622.00 ($5.73) per 10 grams.

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US gold bullion prices rose 0.7% to $1,223 per ounce. The price of Chinese gold bullion increased 0.4 percent to CNY 242.01 ($39.44) per gram. Indian gold bullion prices inched up 0.4% to INR 26,855 ($440.12) per 10 grams. At JPY 4,245 ($39.11) per gram, the price of Japanese gold bullion was essentially unchanged.

Chinese platinum bar finished the day up 0.4 percent to CNY 281.00 ($45.80) per gram. The price of US platinum bar showed little movement yesterday at $1,342 per ounce. Japanese platinum bar stayed flat at around JPY 4,670 ($43.03) per gram.

After two changeless days, the price of US palladium bar fell 1.8% to $812.00 per ounce. The price of Chinese palladium bar rose 1.1 percent to CNY 180.00 ($29.34) per gram after a two-day drop. The price of Japanese palladium bar remained essentially flat at JPY 2,942 ($27.10) per gram.

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