I bought a bit more on the dip this afternoon. Looking at Spot Pd price, that may have been a wize move.
I read PAL's quartly reports and got the impression that their cost of minning Pd is about $230/oz and the new mine comming on line next quarter might be better.
Looks to be like it cost both SWC and PAL about $250/oz to mine Pd.
I see Claifornia and Federal Red Ink continuing and the money supply continuing to expand. Long rates leading short rates for the near future, so no yeald inversion. I don't expect gold to break $440, might hang there for a while, in the mean time Pd will likely continue up and SWC and PAL should start to come out of the red ink. With their writing contracts to limit their floor and ceailing price there is a delay from when the spot price changes to when the profits are made. I suspect that we should just be patient.
If Pal corrects significantly tommarow I'll pull some money from a BAC or FNM short and increase my position.
PAL is expecting a big loss for the third quarter. the only surprise would be if it wasn't down. My guess is that someone is dropping the stock price so that when losses are report they can drop the price again, and then pick up PAL before Palladium moves.