With negative yields where can big money find returns?

July 5, 2019

Marc Chandler, Managing Partner at Bannockburn Global ForEx joins me to recap the major news from this week. We start with the jobs data and how this is shifting some of the expectations heading into the Fed meeting. Next are some comments on the new head of the ECB and the trend of negative yields around Europe. This all leads to a discussion on what mutual funds and large money managers are doing to find yield.

Click here to visit Marc’s free blog – Marc To Market.

    Jul 05, 2019 05:11 PM

    I do not understand why the cost of Palladium is approaching twice the cost of platinum.

      Jul 05, 2019 05:51 PM


        Jul 05, 2019 05:52 PM

        You said one time, it had better property value….? more useful application ?

    Jul 05, 2019 05:23 PM

    open interest on N.Y. Merc. Exchange is twice as much for Pt as Pd.
    Pt melting point is higher than Pd.
    Pt is stronger than Pd.
    Industrial use and consumption for Pt and Pd are about equal.
    Historically productions for Pt and Pd have been about equal.

    So I assume someone must be dumping Pt or someone is restricting supply of Pd…….!!??!!

    Jul 05, 2019 05:54 PM

    Manipulation showed great ability today in THIN trading….

    Gold was put down under $1400.
    Silver was put down under $15

    Why wouldn’t you knock Platinum down under $800 so I would buy some more?

    Jul 05, 2019 05:04 PM


    Platinum’s main use is in diesel vehicles, whereas palladium tends to be used in petrol engines. But rhodium is the most effective catalyst for nitrous oxide (N2O) emissions in petrol engines, as much as seven times more effective than palladium. There is no substitute for rhodium.

    Platinum can substitute for palladium in petrol engines, but this substitution only tends to kick in when the palladium price is double that of platinum. In other words, if palladium is $1,500 an ounce, and platinum $750, we’ll start to see substitution.

      Jul 05, 2019 05:34 PM

      Thank you Nigel…..

        Jul 05, 2019 05:58 PM

        Interesting article…….

          Jul 05, 2019 05:59 PM

          I have talked about the need for platinum to gain a new narrative. Jewellery demand is not coming to the rescue. Where is the demand going to come from? What is the story? The answer to that may be fuel-cell vehicles.

          The use of fuel-cell vehicles is expected to take off, but not until the early to mid-2020s (though the story will get out sooner than that). But if fuel-cell vehicles take off, so will platinum demand – and the normal prices and ratios I have discussed in other Money Mornings, where platinum trades at a premium to gold and palladium, will return.

        Jul 06, 2019 06:58 AM

        My pleasure…I learnt a few things from that article

          Jul 06, 2019 06:25 AM

          Ditto…….some really great points….thanks again

    Jul 05, 2019 05:10 PM

    Thanks, Nigel.

    That may explain things. Except historical ratios, perhaps.

      Jul 06, 2019 06:06 AM

      I guess so. I did read somewhere else that it cost quite a bit in retooling to replace a palladium catalyst with a platinum one in automotive production so that the auto companies tend to put off making the change even if ultimately it would be cheaper in the long run