Metals are making a serious comeback and Palladium is leading the charge.
Palladium has hit recent highs not seen since 2001. Many may think we are at the top of the market, but luckily there’s still several ways to benefit, to varying degrees depending on your appetite for risk. This includes possibly one of the best kept secrets in the metals and mining game.
Year to date we have witnessed a 35% gain in price. Consumption is expected to hit an all -time high of 10.8 million ounces. Growth in the automotive market is driving demand and the supply is simply unable to keep pace.
This is exciting news for people who have investments in the white metal, but how can an investor benefit from already high prices?
Here are 5 ways to leverage the rush on palladium:
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5. Buying physical palladium Bullion
Not as readily available as gold or silver there exists an option to buy physical coins and bars and wafers. This could be seen as a low-risk bet for those who want to make a small investment.
Palladium Futures are at a 16 year high. Both the New York Mercantile Exchange (NYMEX) and the Tokyo Commodities Exchange (TOCOM) trade Palladium Futures. Futures trading typically provides significant leverage, so you'll have to fork up 25% of the cover price to commence trading.
3. Exchange traded funds (ETFs)
These securities funds are backed by physical palladium bars in secure storage. trade on a number of different exchanges around the world. While not being a pure palladium ETF the Sprott Physical Platinum and Palladium Trust (SPPP) offers investment in both metals. The US traded (PALL) Palladium ETF is trading at it’s all time high.
2. Palladium Miners
The option of owning shares in Palladium miners exists and offers potential upside. Most of the worlds platinum is produced in Russia and South Africa. The risk that this presents to investors comes in the form of political instability and closure due to mine strikes.
1. Palladium Exploration Companies
For the astute investor, there exists huge potential upside by doing a bit of research and finding out who will potentially be the future Palladium producers or takeover targets of the majors looking for projects in safer jurisdictions.
While the deal for Stillwater was being put together a little known junior exploration company - Group Ten Metals (PGEZF) was stealthily amassing what is now the 2nd largest land package in the world’s highest grade PGE district - right next to the Stillwater complex. They have just recently listed under the US ticker symbol PGEZF.
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