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…
“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…
for The Daily Reckoning
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.
"There has been an issue that has preoccupied my mind for a long time," writes Dr. Marc Faber. "In economics, it is generally accepted that if the quantity of money and credit is increased, prices will rise… However, since economics is so complex… I question whether the expansion of central banks' balance sheets and policies of zero interest rates could have a deflationary impact…" The good doctor wrestles with the question, in today's essay...
The Biotech iShares ETF is up 23% since the Oct. 15th bottom. No, that is not a typo. Biotechs have torched the S&P over the past two months--more than doubling the returns of the big index. And biotechs as a group are up more than 38% year-to-date. In fact, since we first highlighted the June comeback, the Biotech iShares have gone nowhere but up.
The oil market has been under siege for six months. From service providers to producers this downturn has been painful. Of course, we’ve known all along that oil prices were a little toppy over the summer. In fact, when asked just how low oil prices could go I usually answered with a simple “lower than you’d expect…”
Our forecast that Cuba would be open and integrated within 5-10 years is on track after yesterday's big announcement. Ahead of schedule, even. Click here to see how some investors have profited and what the island's likely future is...
The opportunity to sell and install LEDs is enormous. We’re talking about over a billion lighting fixtures. And the areas with the largest potential -- like parking lots -- have barely begun to change. Banker to the presidents Chris Mayer says you could triple your money in this new tech trend. Here's what you need to know.
It's a theme we've shared with you since April. And it's only gotten worse. The gaming industry has come under all sorts of pressure--a situation I first noticed in the charts. The powerful, multi-year uptrends started showing cracks. And it wasn't long before those cracks turned into gaping holes you could drive a friggin' truck through. That's where things stand today.