Wednesday, April 21, 2010

Palladium - Better Than Gold!

I already mentioned how I tragically dumped by palladium position at $226 in May!

And look, it's gone up another 100 points in the last few weeks. Oh well...

Someone asked me about shorting this metal.

NO WAY. I told him a quick look at a rhodium chart ought to scare him out of that trade. That rare metal went from $350 to $10,000 an ounce a couple of years ago!

A better play, for the insistent palladium bear would be to short the mining stocks - SWC and PAL. Miners across all metals have lagged the underlying commodities, badly at that over the past decade. You watch, palladium will downtick a little and the miners will come in 30%. It took me a long, long time and thousands upon thousands of dollars to learn that miners are real POS.

And within that learning process I learned to get long the commodity, as I did with palladium last year. Only I got in too late and out too early. Timing is beyond everything!

Personally, I won't be touching any of those trades short or long at these levels. I just wanted to say that for insistent shorts, miners have historically been a much better play than futures contracts.

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