Friday, May 01, 2009

Palladium Update



Last year I bought palladium at $390 right before it dropped to around $170. I still have it and it's hanging out near $220 at the moment.

Palladium is Jim Rogers favorite metal - fundamentally. And it's also the favorite of the blogger who writes Stockology.

For a good update on the palladium market see his recent post The True Rationale of Commodities Supply And Demand and also be sure to poke around on his blog and hit some of his numerous hyperlinks.

Palladium might become an alternative energy play from *cold fusion* - see link above.

And there are some investment products about to make the metal easier to manipulate buy.

Basically, just read this guy's other posts:

The Russian Checkmate On Platinum And Palladium Is Looming and The Latest On Precious Metals And Commodities.

Also read this story - Getting in Platinum and Palladium Ahead of the ETF Launch.

What's interesting about that article its mention of industrial opponents to palladium ETFs - in particular Big Auto. If that doesn't tell you to get long, I don't know what would!

I really wish I had free capital at the moment. If I did, I'd buy a whole lot more palladium and sock it away for the long haul.

3 comments:

Anonymous said...

Firstly, take Stockology Guy with a salt mine or two. He's the Wrongway Feldman of investments. Among other things, he shorted FSLR months before it blasted off to a high of $315.

Secondly, Palladium is a bastard as long as the Russians need money, which is always. The ETF would help, but I do not believe a repeat of '01 is possible in a deflationary environment.

Has PAL reactivated their mine yet? That might be a useful indicator.

CaptiousNut said...

The Stockology guy is best served with salt....

He's too all-in with these commodity plays, seemingly anyway.

But I read him for the fundamental stories. Keep in mind that palladium is also Jim Rogers' favorite metal.

Yes, deflation is upon us....but so is currency debasement. Would you rather have $22,000 saved right now or 100 ounces of palladium?

Obviously one should have both hard and soft assets. Diversification/hedging is hard to argue against no matter what the *environment*.

I have no idea about PAL. I own a trifling amount.

Anonymous said...

In fact, I have 32 of the Stillwater rounds from '03. Since they are no longer made, perhaps a collectible premium will apply...but I don't know, they are a crappy strike from a poorly run mint.

Ironically, I also have a pound of tellurium that I bought as a result of Stockology Guy's FSLR ravings. Since CDTE is likely headed for the buggy whip bin, I'll have to encase it in lucite for a novel paperweight.