Palladium is the new gold ?

evosy1978

Hello all,

I just read this thread with interest. Ive also read all the articles that came with it, very very interesting.

So now I ask my dumb question, where can i buy some palladium, because from everything ive read this is where the money is.

Always wanted to invest but I dont see the point of spreading your money about when you have something such as uranium or polladium which just shouts "will make you money" at you?

So how and where should I go to buy a few ounces?

thanks

cloud_dog

wombat42 wrote: »

one obvious point i overlooked is that Platinum currently costs over double the price of palladum (1679.00 v 733.00) and it would likely be a long time for palladium to ever catch platinum up as while palladium goes up platinum would go up as well but probably not so quickly.

Ummm, maybe maybe not. It will all depend on demand (whether that is from manufacturing or investment). If demand for platinum decreases sufficiently the price will drop even in this resource bull environent.

wombat42 wrote: »

So unless platinum becomes significantly cheaper than palladium there is little incentive to switch over even if it were possible.

The two are fairly interchangeable. The quantities and technology used may vary but in essence they pretty much do the same job.

Wombat, I think one of your previous posts where the writer thought there were good fundamentals for palladium for the next few years is probably as reasonable as we can forsee.

cloud_dog

evosy1978 wrote: »

So how and where should I go to buy a few ounces?

Ummmm, assuming you want physical, have you considered investigating any of the bullion dealers in the UK (Baird, UKBullion, etc, etc)? Google is a wonderful thing.

wombat42_2

evosy1978 wrote: »

Hello all,

I just read this thread with interest. Ive also read all the articles that came with it, very very interesting.

So now I ask my dumb question, where can i buy some palladium, because from everything ive read this is where the money is.

Always wanted to invest but I dont see the point of spreading your money about when you have something such as uranium or polladium which just shouts "will make you money" at you?

So how and where should I go to buy a few ounces?

thanks

personally i am getting this ETFS via Hargreaves & Landsdowne
http://www.etfsecurities.com/msl/etfs_physical_palladium.asp
http://en.wikipedia.org/wiki/Palladium_as_an_investment#Exchange-traded_products

incidentally if you buy the metal itself not the ETFS i think you get wacked with VAT.

wombat42_2

cloud_dog wrote: »

Ummm, maybe maybe not. It will all depend on demand (whether that is from manufacturing or investment). If demand for platinum decreases sufficiently the price will drop even in this resource bull environent.

The two are fairly interchangeable. The quantities and technology used may vary but in essence they pretty much do the same job.

Wombat, I think one of your previous posts where the writer thought there were good fundamentals for palladium for the next few years is probably as reasonable as we can forsee.

yes platinum would have to be seen as sustainably cheaper for a long period of time to make switching worthwhile, not to mention the switchover costs. Not likely to happen anytime soon.

sabretoothtigger

Commodity News

Precious Metals:
Gold US$1,390/oz vs US$1,401/oz yesterday- Prices ease back in morning trading as dollar firms
• The number of shares held in Ishares Gold Trust, the 4th largest ETF rose by 7.6% yesterday. The figure is the biggest increase since 2006.
• SPDR gold holdings rise slightly to 1,286.79 (41,469moz) from 1,289.83 (41,469moz) Current value US$57.683bn.
Platinum US$1,694/oz vs US$1,711/oz yesterday -
Palladium US$754/oz vs US$762/oz yesterday –
Silver US$29.20oz vs US$29.82/oz yesterday – Industry forecasts suggest that industrial demand in 2011 could allow silver to reach US$40/oz.
• Figures provided by a number of ETF, showed that Silver holdings rose for the 4th day in a row, expanding 73 metric tons to 15,163 tons, the highest level since February.
Rhodium US$2,325/oz vs US$2,300/oz yesterday –

Base metals: A Stronger dollar is pushing prices down across the board
Copper US$9,131/t vs US$9,254/ yesterday – Prices are off slightly this morning on profit taking, dollar strengthening and speculation that China will move to further tighten property speculation and development in the early stages of 2011.
• Rumours are again circulating that at least 90% of LME warehouse copper is held by one unidentified company.
• Chile’s mining chamber sees copper prices remaining high for the next two years.
• Copper inventories in warehouses monitored by the London Metal Exchange have dropped 30% this year, heading for the first annual decline since 2004, and were at a 14 month low of 350,900 tons yesterday.
Aluminium US$2,347.00/t vs US$2,359.00/t yesterday – Rio Tinto plans to spend US$1bn on smelting operations in Canada as part of its strategy to prepare for anticipated tighter markets to come.
Nickel US$23,493/t vs US$24,910/t yesterday – China’s refined nickel output hits highest level in November since December ’09 at 20,415t up 15.6% yoy taking YTD production to 205,008t up 29.5% yoy.
• Nickel pig iron smelters in Shanxi, Yunnan, Jianxi and Xinjiang provinces have all been asked to cut or shut down operating rates for at least two months as local governments try to reduce power consumption to meet Beijing’s energy saving targets.
Zinc US$2,284/t vs US$2,355/t yesterday –
Lead US$2,418/t vs US$2,466/t yesterday –
Tin US$26,150/t vs US$26,400/t yesterday –

Energy:
Oil US$90.81/bbl vs US$91.42/bbl yesterday – Prices are off for a second day today on the back of data showing that US fuel stockpiles rose last week.
Gas US$4.235/MMBTU vs US$4.406/MMBTU yesterday – Gas futures slip back in New York due to forecasts of milder weather in the mid West.
Uranium – $61.75/lb this week vs $61.00/lb last week – Prices are up this week as demand for uranium from China and the US continues to grow. Prices fell last week as a result of sellers trying to place material before the end of the year. Uranium is now 39% higher than at the start of the year. Estimates suggest that spot market supply is thinning out and therefore should support prices over the coming months.

Other:
Iron Ore – Spot prices for India fines are reported to be trading at US$173-175/t cfr

Just a general round up for the sake of the record. Which is a better play on car industry demand, pal or oil

wombat42_2

Platinum, palladium flagged as stars of 2011
http://www.financialpost.com/news/investing/Platinum+palladium+flagged+stars+2011/3992530/story.html

wombat42_2

http://www.kitco.com/reports/KitcoNews20101217ASKN.html

“The outlook for silver, platinum and palladium in 2011 and 2012 remains favorable,” said a research report from BNP’s Anne-Laure Tremblay. “In our view, palladium has the most upside given its tight physical balance. The platinum physical balance will need some more time before it begins to tighten. Silver should continue to draw support from gold.”

Palladium prices have risen 30% for the quarter to date.

“If anything, the market’s view of the metal has become even more positive given increasing rumors of the depletion of Russian stockpiles,” BNP said.

The bank looks for palladium demand in auto catalysts to rise by 30% this year, then slowing to 8% to 10% the following two years. There has been a rebound in auto demand in the U.S. and Japan this year, while China’s auto production continues to register double-digit growth. Furthermore, palladium is benefitting from ongoing substitution away from more-expensive platinum, BNP added.

The electronics sector has driven other industrial demand growth for palladium in 2010, although jewelry demand weakened in China, the largest consumer.

Investment interest rose significantly since October, with ETF net inflows totaling 7.2 metric tons in the first 10 days of December. This was the highest level since January, when the first U.S. palladium ETF was launched, BNP said.

“Looking ahead, investment demand in 2011 may moderate from its 2010 level, notably due to an expected absence of major ETF launches. However, palladium should remain one of the favored metals for investors due to its strong fundamentals,” BNP said.