Monday, July 28, 2008

Buy A Little Palladium



It might very well be time to get long some palladium - read the basics on Wikipedia.

Though I've been trading gold and silver I haven't ever done much trading of palladium - or any of the other so-called PGM - Platium Group Metals: platinum, palladium, rhodium, ruthenium, iridium, and osmium.

Jim Rogers is bullish on it. AND, it's got a healthy chart:



If you read this blog post, there's a 73% chance you'll get all bulled up as well.

On the commodities exchanges, the minimum increment is 100 ounces. In other words, one futures contract gets you that much of the metal. With palladium trading around $400, that makes the smallest possible investment about a $40,000 commitment. (Though, margin for that is just less than $4,000).

One could play Stillwater Mining Company or North American Palladium Ltd as equity plays on a palladium run. I bought a little of both - stock in PAL and Jan 2010 15-strike calls in SWC.

Now that I am long some palladium (bought December delivery at $394) I can daydream about it doing what rhodium has done over the past few years.



Yeah, you're reading that correctly. Today, rhodium trades for 30 times what it did 5 years ago!

1 comment:

tom. said...

rhodium - nice.