Palladium's Supply Constraints Suggest Bullish Investment; Special Report by Leading Financial Web Site Penny Stock Detectives

In a recent Penny Stock Detectives article, editor Danny Esposito points out that worldwide industrial demand for palladium grew seven percent in both 2010 and 2011

New York, NY (prHWY.com) August 4, 2012 - In a recent Penny Stock Detectives article, editor Danny Esposito points out that worldwide industrial demand for palladium grew seven percent in both 2010 and 2011, with all accounts seeing demand in 2012 grow by at least that much. Additionally, Esposito asserts that supply constraints, due to safety issues and labor disputes in South Africa, a dwindling stockpile in Russia, and Japan's serious investment in palladium suggest this precious metal is a strong bullish investment.
Esposito observes that in South Africa, mines have been shut down because of safety issues, while labor disputes have led to strikes, which have caused production at palladium mines to be suspended for long periods of time.
Esposito reports, "These issues began to disrupt mine supply in 2011, but in 2012, the strikes and shutdowns have increased in frequency, making investors question how severe supply constraints of the precious metal must be in 2012."
Companies, including palladium miners, are also questioning their palladium investing in South Africa, now that labor costs have increased after successful wage raises due to the strikes, along with the fact that palladium investing has not led to a spike in price of the precious metal, observes Esposito.
According to the Penny Stock Detectives editor, it is estimated that Russia and South Africa supply roughly 85% of the world's market in the precious metal. Russia made a conscious decision years ago that palladium investing was important to it and created a stockpile. Russia is currently dipping into that stockpile to meet the palladium investing demand throughout the world.
However, the supply coming from Russia's stockpile has been falling steadily over the last few years, notes Esposito.
"Since Russia provides no data about how much palladium it has, speculation is rampant that Russia is running out of the precious metal," reports Esposito. "Certainly the continued fall in supply from the country is a sure sign that palladium investing is going to be required to bring added supply online from other parts of the world.
The Japanese government seriously plunged into palladium investing when it purchased Stillwater Mining, which has a palladium mine that is expected to have a life of 12 years, Esposito observes. He argues that Japan is securing the supply of the precious metal because the global supply could run into a deficit as early as this year.
With Russia providing less supply and the problems in South Africa only getting worse, palladium investing is something miners and other countries are considering, since supply issues could surface soon, says Esposito.
"Japan wasted no time in palladium investing, considering this backdrop. Since the price of the precious metal has not risen, investors may want to follow Japan's lead," he concludes.
To see the full article and to learn more about Penny Stock Detectives, visit www.pennystockdetectives.com.

The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at www.pennystockdetectives.com.

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Tag Words: palladium investing, precious metal

Categories: Business

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