Volkswagen Scandal Shook Platinum, Palladium Prices; Hits Monthly Index

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Metal Prices, Precious Metals
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MetalMiner’s Global Precious MMI lost what it had gained the previous month, dropping 2.6% back down to a reading of 74.

Nearly all gold, silver, platinum and palladium prices that we track on the MetalMiner IndX, across all regions, fell over the past month, matching this precious index’s all-time low.

Global-Precious-Metals_Chart_October-2015_FNL

Free Download: Last Chance – Get the full September MMI Report

Even though silver hit a 3-month high this last week, the metal is still in an overall long-term downtrend – as my colleague Jeff Yoders writes, hey, take the victories where you can get ’em.

SilverChartoftheWeek

And long-term downtrends are where it’s at lately for the precious sectors, mirroring the ferrous and base metal sectors. Platinum isn’t immune to losses either, as prices in the US, China, India and Japan have all come down over the last month. Palladium, however, did tick up a bit across those markets. (The price for US palladium bars, for example, rose 8.5% over the month of September, up to $651 per ounce.)

As my colleague Raul de Frutos wrote recently:

“Palladium and platinum prices have been volatile after investors heard of the Volkswagen Group scandal. Industry reports are suggesting that this could be the end of diesel cars. With 40% of platinum demand coming from the making of auto catalysts for diesel cars, that’s pretty bad news for the precious metal. Platinum fell 4% after the news, although it recovered some of its losses” soon after.

Ultimately, in MetalMiner’s view, based on how investors reacted to the news, we’ll likely see both platinum and palladium trending in opposite directions in the short-to-medium term.

Notable Precious Price Mover

  • US palladium bars shot up 8.5% over the month of September, up to $651 per ounce from $600.

Free Download: Last Chance – Get the full September MMI Report

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