Sat, Aug 30, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge funds bullish on palladium prices as shortage looms

Tuesday, August 06, 2013

amb
Palladium
Precy Dumlao, Opalesque Asia:

Hedge funds are bullish on palladium’s prices as global financial firms like Morgan Stanley and Credit Suisse have predicted there will be a shortage of the metal.

A report by BusinessWeek said that Morgan Stanley had predicted that global demand for palladium would exceed the 1.33 million ounces to be produced this year. For its part, Credit Suisse said the shortage for the metal would last up to 2016, while research firm CPM Group said the deficit would take a decade to fill.

John Stephenson, who manages C$2.65bn at First Asset Investment Management Inc in Toronto, was quoted as saying, "The supply situation is potentially very bullish for palladium, so I am probably the most bullish on palladium amongst all commodities. Any time supply and demand are out of whack, we see prices swing."

Palladium rose 3.3% to $728 in London this year, says BusinessWeek. Prices are expected to reach $800 an ounce in Q1 of 2014, a 9.2% increase from its current level and further rise to $850 in 2015. Already, speculators, including hedge funds, have raised their bets on higher prices as car sales are expected to to rise. 67% of the palladium supply is used in auto-catalysts.

Data from the U.S. Commodity Futures Trading Commission (CFTC) showed that hedge funds and other speculators hold a net 22,970 palladiu......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing Square, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the

  2. Comment – Why you should avoid the hottest hedge fund hands, Swedroe attacks Hussman over risk management, relative value strategy[more]

    Why you should avoid the hottest hedge fund hands FromCNBC/Yahoo.com: Investors who don't have money with Pershing Square Capital Management are likely salivating at the hedge fund's industry-leading 26 percent return from January through July. But investing with Bill Ackman and other to

  3. Hedge fund assets decline in July - eVestment[more]

    Bailey McCann, Opalesque New York: Total assets in hedge funds declined in July and dropped 0.49%, marking the industry's second monthly asset decline in 2014, according to the latest asset flows data from eVestment. Despite the asset decline, total industry AUM remained above the $3 trillion

  4. AIMA makes 'the case for hedge funds'[more]

    Bailey McCann, Opalesque New York: The Alternative Investment Management Association (AIMA), the global hedge fund industry body,

  5. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest