Quiver Quantitative, an alternative trading data platform, has been diligently monitoring the investment activities of Congress members and other US representatives.
While the majority focus on US stocks, yielding significant profits amid the market rally, a unique revelation emerged on January 9. Breaking away from the norm, Quiver uncovered that one US senator is venturing into an unconventional territory—palladium, a very rare precious metal.
US Senator bets on palladium
Labeling it as a “suspicious trade,” Quiver Quantitative said US Senator John Boozman has been buying up palladium.
Valued highly for its rarity and high melting point, among other things, palladium is the most expensive precious metal, more so than gold, silver, and platinum.
The X account claimed this was the first time it had seen a politician invest in palladium. Given that palladium has vast applications in the automotive and electronics sectors, Boozman’s move may raise some eyebrows, particularly when knowing that he is sitting on the Senate Subcommittee on Transportation.
Palladium price analysis
Boozman’s bet on palladium comes on the back of a significant retreat in the metal’s price. Notably, palladium futures have lost more than 20% in the past year, plunging from around $1,800 to $987 as of January 9.
The rarest precious metal is clearly in a bear market. One reason behind this drop in prices is manufacturers changing how they get their materials to be less dependent on Russia, contributing to the overall decrease in value.
In the first nine months of 2023, the volume of palladium Japan imported from Russia plummeted by 40% compared to the same period in 2021.
More recent price dips have been caused by concerns that the increasing adoption of electric vehicles (EVs) might diminish long-term demand. This downturn partially reversed the gains from December, which were spurred by Britain’s widening sanctions on other Russian metal trades.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
Source: https://finbold.com/us-politicians-are-buying-up-this-precious-metal/