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

How to Invest in a Strong Dollar World

Chris Mayer

Our friend Jim Rickards and founder Addison Wiggin believe the dollar will soon meet its demise. Chris Mayer, on the other hand, thinks the dollar will only get stronger this year and next. We'll let you decide for yourself. In this featured essay Chris lays out his train of thought and a guide for investing in a strong dollar world. Read on...


“How to Get Rich” is Not How You’d Expect

Chris Mayer

The first thing you might notice about the life of Felix Dennis is that he devoured crack cocaine during massive orgies with hookers at his mansion. Yet despite his penchant for sex and blow, he admitted, "making money is the one addiction I cannot shake." And thankfully, he wrote a book about it. Chris Mayer explains...


Bitcoin: Buy Now or Forever Hold Your Peace

Chris Campbell

Bitcoin has been pretty quiet lately. But that doesn’t mean big things aren’t taking place behind-the-scenes for the digital currency. In today’s Laissez Faire Today, Chris Campbell pulls back the curtain and shows you how bitcoin is quietly slipping into the mainstream. He also shows you why now could be the time to buy now, or forever hold your peace. Read on…


Here’s the Market’s Next Hot Sector…

Greg Guenthner

According to my friend and fellow technician Ryan Detrick, The Russell’s quarterly win streak of 8 is the index’s best performance of all time—even topping two monster runs in the 90s. So if small-caps are slipping, where can you find the next hot sector? The answer might surprise you…


Maestro
Will The Swiss Vote to Get Their Gold Back?

Ron Paul

The Swiss gold referendum in November is far more important that many people realize. The outcome could quell or confirm doubts about the amount of physical gold available at the New York Fed. And that could send the price of gold higher by multiples. Dr. Ron Paul brings you up to speed on what's happening in Switzerland...