International Business Times reported that according to Norilsk Nickel (MCX:GMKN), sales from the Russian government’s “secret” palladium stockpiles could come to an end by 2014.
If the company is correct, the precious metal, which is already set to be boosted by robust car markets in the United States and China, should rise even further.
As quoted in the market news:
The Russian finance ministry used to deliver as much as 2 million ounces of palladium onto the market annually, according to a Norilsk Nickel presentation at a recent precious metals conference.
That has dwindled to less than a million ounces in 2010. Only 100,000 ounces of palladium – used mostly in automobile parts and less commonly in electronics and jewelry – is likely to be delivered by the government in 2013, the industry expects.
‘In the last couple of years, the stream has become really thin,’ said Norilsk Nickel market strategist Anton Berlin in New York on Thursday. ‘We view this as a very good indication that the stockpile is depleted. And we don’t expect that the Russian government sales will have any influence on the market this year or in any following year.’