Greg Guenthner

Gold has dominated the precious metals headlines this year.

You’ve watched the yellow metal’s shaky start to 2013. You’ve seen it fall from close to $1,800 back in September to below $1,600 today.

Heck, a lot of this drama has played out on these pages — especially when I gave you advance notice of gold’s impending drop just before it shed $100 on its slide to the $1,550’s.

But gold has settled after a couple of wild weeks. So for now, I want you to focus on another precious metal — one that has not received nearly enough attention lately.

I’m talking about palladium…

Palladium Price vs. Gold Price

“Demand for palladium has been stagnant for over a year, but now is growing,” writes resource maven Byron King. “There’s not enough new palladium mine output (plus recycled metal) to meet the need.”

The need Byron references here is catalytic converters. As automakers ramp up demand, palladium is a key material used in diesel engine catalytic converters. Add in the fact that diesel-powered vehicles are the fastest growing auto segment, and you have a very compelling argument for this industrious precious metal.

It’s no surprise that palladium has broken free from gold over the past two months. After trading hand-in-hand for much of 2012, palladium has picked up the tempo — while gold has stumbled. The palladium to gold ratio has ticked steadily higher for more than four months as palladium prices jumped from a low near $600 in late 2012 to $735 today.

While you wait for gold to tip its hand, betting on palladium is a strong option. Fundamentals and price are lining up in favor of a strong upside move…

Greg Guenthner
for The Daily Reckoning

Greg Guenthner

Greg Guenthner, CMT, is the managing editor of The Rude Awakening. Greg is a member of the Market Technicians Association and holds the Chartered Market Technician designation.

Recent Articles

The Next Car You Buy Will Be an Electric Car

Stephen Petranek

Electric cars are proving to be far cheaper to operate than anyone could have guessed. In fact, many people are now just getting the equivalent of thousands of mpg to their electric cars. And that's presenting a unique profit opportunity. Stephen Petranek explains...


A Treasure Chest of “Secret” Buy Signals

Paul Mampilly

The world's most successful investors almost always think differently. That's nowhere more apparent than when you're trying to invest in health care. Today, Paul Mampilly - one of the world's top biotech analysts - reveals one "secret" for making money from a predictable cycle in the industry. Read on...


Natural Gas: How to Stay Warm (and Profit) This Winter Season

Greg Guenthner

Right now, the city of Buffalo, NY is covered in five feet of snow. And while that may be bad news for those poor folks, it could be good news for you. Because now that another harsh winter is upon us... you have a massive opportunity for quick double-digit gains. Greg Guenthner explains...


Tip of the Day
3 “Dirty” (and Sexy) Ways to Boost Your Health Tonight

Chris Campbell

Warning: The following article is not for the puritanical. Today, Chris Campbell shows you three "dirty" health boosters you can use tonight to raise your immune system... improve your outlook on life... and make your partner a happy camper. Read on...


The Shock Doctrine: When Order Trumps Personal Freedom

James Rickards

When some event - be it a terror attack, financial panic or natural disaster - upsets the status quo, people are more willing to relinquish their freedom in favor of a greater sense of security. And that's when ambitious political leaders make their move... And as Jim Rickards explains, another such event could be right around the corner. Read on...