Start the conversation
Comment on This Story
Or to contact Money Morning Customer Service, click here.
This site uses Akismet to reduce spam. Learn how your comment data is processed.
At times like this, gold and silver typically grab all the attention… and attract all the "safe" money. But there's another metal that could blast past both of these, virtually overnight.
That's because it has unique physical properties for which there is just no substitute – something its biggest consumers lose quite a bit of sleep over.
It's 15 times more rare than platinum… and 30 times more rare than gold.
And, as you'll see in the chart below, it hasn't been this attractive in 13 years.
We're looking at a 70% gain on this one – perhaps more – no matter how far Washington kicks the "debt can" down the road.
At current prices, it could even double…
Palladium: The Double-Your-Money Metal
Even when the government isn't on the brink of financial suicide, palladium is in heavy – and growing – demand.
It's found in everything from jewelry to dental equipment, including a wide range of electronics.
Tablets, flat screen TVs, iPhones, iPods, iPads, iEverythings…
They all require palladium.
Electronics represent 12% of gross palladium demand.
For perspective, there were 5.4 billion cell phones on the planet in 2009. By the end of this year, estimates are that there will be 8 billion. It's going to take a lot of palladium for the world to keep talking, texting, and tweeting.
But its most significant use is in the automotive industry, where fully two-thirds, or 67%, of all palladium is consumed each and every year.
That's because palladium is found in virtually every single gas-powered vehicle's pollution-controlling catalytic converter.
And global light vehicle production has been on a tear in the last couple of years, with no signs of abating. 2011 saw 77 million light vehicles produced, and 2012 saw 81 million. This year, it's expected there will be 85 million units produced, and by 2017, IHS Automotive forecasts 102 million units.
By 2018, China alone will likely be manufacturing and buying about 31 million vehicles annually.
Developed and developing economies alike have adopted increasingly stringent emission control standards, boosting the need for palladium.
There's little doubt, we're going to need a whole lot more of this specialized metal.
But it's not going to be easy…
Global Supply Is Dwindling
What's crucial to understand about palladium supply is where the metal is actually sourced.
About the Author
Peter Krauth is the Resource Specialist for Money Map Press and has contributed some of the most popular and highly regarded investing articles on Money Morning. Peter is headquartered in resource-rich Canada, but he travels around the world to dig up the very best profit opportunity, whether it's in gold, silver, oil, coal, or even potash.
How do I change my investments? I Am not o e of those people who wAtches her portfolio closely. Need your help…
Thanks
I am only a stock dabbler, so take my advice cautiously. I would need to know if your investments are held by a brokerage company with an assigned dealer, or online in an account that you manage. If you have an account with a full service brokerage, like Edward Jones, you would have to call or visit your broker and request a trade. Fees are so large for trading, up to 3%, that trading in and out of positions is not worth it. Even so-called discount brokers charge a lot. If you trade online, then you still have to examine the trading costs, there are two fees, remember, selling and buying. If you have examined all of these obstacles and still want to trade, then the easiest vehicle to trade is an ETF, palladium or precious metals. I can't counsel you on the best. I would choose a large one with sufficient trading volume, offered by a larger company. I think iShares is one company to start.
Actually, we are in the midst of a catalytic renaissance–thanks to advances in nanotechnology, we are rapidly discovering ways to replace precious metals such as platinum and palladium. This is one of the primary reasons fuel-cells are about to take the electric vehicle market by storm. Demand for these metals is going to crash over the next ten years.
Do you work for DOE? Can you explain how nanotechnology will replace the need for metals.
Thanks.
Please: a recommendation on how to invest in palladium
I'm still waiting for the predicted triple digit silver and $5K gold to materialize???now palladium at only $1,200.00 by 2015????
How might one invest in palladium?
Thanks.
My question: Is it possible to reprocess the contents of used catalytic converters to recover the palladium so it can be reused in new converters and use fresh palladium for electronic devices? This could enable the industry to prolong the time they use up the palladium, giving them time to find another element to be used to replace it. Sincerely, James D. Tomlinson. 86 years old.
Palladium is NOT the metal to go. It is rhodium, which like palladium is essential for the cars and trucks. It has collapsed from $10,000 an ounce to a mere $1,000. A 90% drop. Check it out. You can buy it at Kitco.
You can buy and more importantly sell palladium and rhodium and other precious metals at Kitco
pal caught a downgrade today. I find the timing of this to be very interesting. what are your thoughts?
I like this investment on palladium. So where or who do I see as to invest in this 4$ stock???
Dear Peter,
I am a Money Morning Reader and an Inventor, working on a project using Graphene. I would like to ask that you to write an article which lists investments for it. The electronics industry is using it in new electronic components. The solar panel companies are using it for more efficient and higher output panels. The battery companies are making batteries that charge in minutes and output 5 times longer. I believe this to be the new as good as gold stock of the future. This material is expensive by the once to purchase and the companies manufacturing it are making great profits.
sincerely,
Ed
Edgar:
Our technology experts, Michael Robinson, has written extensively about graphene. Check this out: http://moneymorning.com/2013/03/13/what-you-need-to-know-about-investing-in-graphene/
How can I invest in palladium? Can you recommend particular companies whose stock is poised to take off because of the current palladium situation? Especially stocks under $5 or $10?
Palladium has been getting a lot of attention thesedays or months. While it is very enthralling to invest, people should be more vigilant and do more research about his new investment.