Silver/Gold/Platinum/Palladium Ratio

I appreciate that point of view as well Lars. I had never really thought of the gold/silver ratio in that light. My experience with Palladium and Platinum, however, has shown me that industrially, they are directly related. Platinum group metals (including Pd) have very similar physical and chemical properties.

If only I knew which one was most underpriced!

Thanks.

Normally I don't participate in forums. I usually sit on the sideline and watch from a distance. But I thought it would be nice to join in on the fun. I've learned a lot already from many of you over the past few months, and I look forward to hopefully becoming a positive contributor to the discussion.

SD, traevin is being WAY too kind. Truth be told, I could help everyone here by listening more and talking less.

traevin is absolutely correct in that we do have some very smart and savvy people here on CCF.

I stick with gold and silver. Its widely known and accepted around the world. Tell someone in Peru that you have PD or PT and they would shrug at you. Show them gold and silver, and they will acknowledge what you have. PD and PT are less widely known.

Good point SDCrow. If two metals are effective substitutes, there could be some use to ratios in determining the undervalued metal.

If so, then Pd is a great buy at less than 1/2 the price of Pt.

I would agree with that but also know that some will go up more than others. Take silver for example. On a good day for PMs, it will often rise at twice the percentage as does gold. Silver may be a special case, though. It is a very small market and if those who say that the silver market is manipulated are correct, then once that manipulation ends and true price discovery is allowed, we may see MUCH higher silver prices.

As an industrial chemist during my working years, I was keenly aware of the cost of the raw materials in all of our processes and that especially included the catalysts. Both Pt and Pd can be used as hydrogenation catalysts, for example, but the preference not only rests on the cost but also on the specificity, efficiency, and the recoverability of a specific catalyst. Pd has seen significant growth over the years because it can often be used as a viable substitute for more expensive Pt. I am wondering whether or not Pd and Pt will see price parity at some point. Increasing demand for Pd could assist in that. Both are about as rare and annual world production is almost identical.

Interesting info on Pd can be found here: http://www.stillwaterpalladium.com/