While everyone remains focused on Gold, I suggest checking out other Precious metals.
Over the past year, Palladium, Platinum and Silver have been kicking Gold’s shiny yellow ass!
>
>
Chart courtesy of Ron Griess of The Chart Store.
While yesterday's US stock market close was poor, Asia and Europe didn't follow today as debt in Greece, Spain, Portugal, etc... rallied, their CDS narrowed and stocks bounced. The Greek finance minister said January tax revenues came in above expectations and that spending was below target for the month and said "that means the deficit reduction for January is well within what we have promised." The euro is rising in turn. Also helping is the story that Trichet is headed to the European Union leaders summit a day early in order to address Greece's problems even as the Greek finance...
read more »
November 18th, 2009 at 9:33 am
Yes, Palladium has outperformed in 2009.
But woe unto to him that bought in early 2008 at nearly $600/oz.
Even with the recent run-up, Palladium is still off its 2008 high by more than 35%.
I’m very happy with and will stick with my Gold, thank you.
November 18th, 2009 at 9:40 am
Longer-term though platinum and palladium seem to have way underperformed gold and silver. Anybody have any ideas why?
I notice the Royal Canadian Mint produces palladium Maple Leaf coins. I was seriously thinking about buying some recently.
November 18th, 2009 at 9:41 am
Gonna buy my wife a palladium necklace for the holidays.
November 18th, 2009 at 9:51 am
what matters is its ratio to platinum (both have same use),
and yes,
at the bottom of the crisis,
the ratio went to an unprecedented 5.5,
should have played the spread,
now i dont know.
http://www.goldsheetlinks.com/pgms.htm
November 18th, 2009 at 9:59 am
How do you invest in palladium?
November 18th, 2009 at 10:04 am
futures:
http://www.cmegroup.com/trading/metals/precious/palladium.html
November 18th, 2009 at 10:12 am
http://clusty.com/search?input-form=clusty-simple&v%3Asources=webplus&query=Palladium+Jewelry
The substitution effect will be a growing + for Pd..
funny, the Coin Dealer was buying Pd @~U$D 200/oz, earlier this year, right she was..
November 18th, 2009 at 10:17 am
thfiv: You can invest in physical through http://www.apmex.com. I’ve used them for years and usual the best prices over spot and service. They also have a “pool” fund account that you can participate in that works nicely and you have the option of taking physical delivery at a charge if you want. You don’t have to do futures specifically.
November 18th, 2009 at 10:21 am
from a tax stand point why would u buy physical?
futures r taxed at 60%ltcg 40%ordinary
collectibles at 28%…
November 18th, 2009 at 10:32 am
Palladium has numerous applications and uses. Given that, a pd buy is bet on its increased use, increased economic activity [at a fairly rarefied level]; ie I don’t think that pd has been used as a store of value. If you bet is greater instability and diminishing confidence in the govt, then pd only works if one believes that the rest of the world will provide sufficient demand to sustain its global price.
I would like to note a few things:
1) Pd is up 92%- that does not indicate an attractive entry point to me personally. That is to say, how much fewer will it go (is that rise a function of USD dynamics? Or is it a reflection of recovering demand, if so how’s its price in other currencies?)
2) Vis-à-vis gold, it seemed to me that there was a sector of gold producers (as opposed to ownership of a paper-based claim or physical possession) which offered a more attractive risk-reward profile.
3) I mentioned two of them in comments here on the board-
a) Ventana Gold Corp. (VEN) on July 31, 2009- it has since more than doubled, see for yourselves:
http://www.google.com/finance?q=TSE:VEN
b) Dynasty Metals and Mining (DMM)- has moved from the 3.80 level to as high as 6.20 since I tried to draw attention to it. Currently in the 5.50s.
What’s the point? Go find things, research them, think about price and get them before others in the market recognize their value…this is called speculation, it is risky, there are ways to mitigate risk- the best way is to de-program yourself and stop believing the horsepucky that has been drummed into you since Howdy Doody first came on the air. Then, try acquiring knowledge.
My good suggestions: F, GFA, CWV, VEN, DMM, XL, ACAS (way back in March for those two)
Bad ideas: playing around with FAZ, CF, QID
Fair- TBT @ 45+ a couple of weeks ago.
November 18th, 2009 at 10:33 am
Lots of apples and oranges here. Let’s just look at the sources of demand.
To one degree or another, these metals all have some industrial applications. Captain Obvious assures me that the level of demand will vary according to the robustness of the industries utilizing them.
Then there is the demand from pure market speculation and psychology. If there is a collective bullishness for precious metals, then there will be a self fulfilling bull market for precious metals.
However, gold and silver have a significant advantage over the other PMs. Gold and silver coins are also seen as a hedge against hyperinflation or financial Armageddon. I haven’t ever seen palladium kruggerands or a platinum maple leafs. So “hard currency” considerations are a source of demand for gold and silver that the other metals lack. I believe that in the event of a serious economic crisis, then gold and silver will have a break out that leaves platinum and palladium far behind.
November 18th, 2009 at 10:34 am
Palladium is used in cataliytic converters and diesel automobiles need twice the amount of paladium a convention gasoline automobile uses.
TDI automobiles are a better in every than a hybrid.
Palladium prices should have more support than gold long term as a result.
November 18th, 2009 at 10:43 am
Some resources I feel comfortable recommending:
http://incakolanews.blogspot.com/ (his IKN weekly is extraordinary)
http://www.kaiserbottomfish.com/s/Home.asp (subscription- some very technical inf0)
http://www.miningcompanyreport.com/ (sharp)
There are of course many others. Plenty of charlatans out there. Use your judgement (a blessing or a curse as the case may be)
November 18th, 2009 at 10:45 am
I know Jim Rogers is big on the “other” precious metals. Anyone catch what he said on TheStreet.com last week?:
“Aside from gold, what other precious metals do you own?
Jim Rogers: I own silver as well. I would suspect that if you were buying [gold or silver right] now silver would be a better buy. I mean gold is making all time highs, [but] silver is 70 per cent below its all time high. Now, if my thesis is right about commodities that they’re going to make new all time highs, obviously you would make that much more [money] in silver than in gold.
What about palladium and platinum?
Jim Rogers: I own them all. I think probably now the better plays would be palladium and silver but again let me hit you over the head and say I am world worst market timer and trader. I think you would make more money with silver and palladium at this point but I own all four [gold, silver, palladium, platinum].”
“Jim Rogers On Currencies, Precious Metals”
http://www.investorazzi.com/2009/11/17/jim-rogers-on-currencies-precious-metals/
November 18th, 2009 at 10:56 am
Take a look at Fortuna Silver Mines (FVI), research it, study it…DYODD
http://www.google.com/finance?q=CVE%3AFVI
Has recently had a strong move from 1.70 to 2.10+ area.
Start here:
http://www.fortunasilver.com/s/home.asp
DYODD
Also:
BTO- B2Gold: http://www.google.com/finance?q=TSE:BTO
November 18th, 2009 at 12:01 pm
[...] [...]
November 18th, 2009 at 12:43 pm
Precious metals are cool, but how do I invest in the Lanthanide series?
November 18th, 2009 at 1:19 pm
I invested in palladium earlier this year buying shares of PAL (North American Palladium co) at around 1.46 and sold around 2.70 per share. For silver and gold, I prefer the physical stuff. The physical stuff is far easier to unload with silver and gold b/c people know what it is. It takes too long to help people understand what palladium or platinum do.
November 18th, 2009 at 2:19 pm
@MRegan Two of your recommendations didn’t turn up: CWV and VEN
November 18th, 2009 at 3:13 pm
@akahn: CWV is CROWNPOINT VENTURES and VEN is VENTANA GOLD CORP
http://www.google.com/finance?q=CVE%3ACWV
http://www.google.com/finance?q=TSE:VEN
November 19th, 2009 at 7:39 am
[...] Gold run? Try palladium – Ritholtz [...]
November 19th, 2009 at 8:32 am
[...] The flight to gold continues, from central bankers and individuals alike. Hedge fund manager John Paulson is to launch a gold fund, investing $250m of his own money. One market strategist suggests India’s recent purchase of 200 tonnes of the precious metal could start a gold run akin to that of the 1970s. During that time, gold prices were so high they almost fully backed the dollar: the same event now would see gold rising to $6,300 a troy ounce. Others scorn the rise of gold, which seems muted when viewed in non-dollar terms. They suggest looking to palladium, platinum or silver (see chart). [...]