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 Replies: 13 / Views: 1,975 |
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Pillar of the Community
Japan
666 Posts |
I've seen several palladium coins, mostly russian, traded on the auctions. Prices are below the spot, but I'm not sure about future prospects of the metal. As far as I know it lacks publicity as a monetary metal, and mostly used for production purposes.
So, what's your opinion?
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Pillar of the Community
United States
3670 Posts |
A cheaper poor mans platinum that is mostly used in the auto industry, hence it maintaining decent sideways movement of stability around 600 for some time now, ever since its big jump from 200 per oz. back before it was used so much in the auto industry perhaps..... There are collectors out their intelligent enough to know what it is and pay big dollar for it in coin form, such as many members here at CCF for example.... But as we all know for world pop, our numbers are small around 1% of the population getting, understanding, perhaps investing in in large amounts of pmz. So with that being said the numbers into palladium coins would have to be very limited.... Still the 1% which is into PMZ of the world pop and the percentage of that into palladium coins still would be millions of people, via vast amounts of people more then mind can comprehend.... Are you gonna be able to market to them all no, but tools like ebay even with their big chunk of take it is still perhaps the best way to get that type of rare product moved when need be.... Edited by Silverhawk74
07/09/2012 1:36 pm
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Valued Member
United States
456 Posts |
I personally think there are a large amount of up and coming industries that may be using palladium in the future. It has very similar chemical/physical properties to platinum with a lower price tag. I'm looking to invest in physical palladium in the near future.
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Pillar of the Community
United States
4008 Posts |
I would not be afraid to buy palladium (Pd) coins if the premiums were reasonable. The current premium on US 1-oz. platinum coins is not reasonable, IMHO. A 1-oz. coin with a $125 premium over spot is just not reasonable when Pt is selling for less than Au and the premiums there are usually in the $30-60 per oz. area. I am hoping that the US Mint will soon start producing Pd coins for collectors. I would like to have a couple of tubes of those.  |
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Pillar of the Community
United States
1454 Posts |
Good points from Hawk and SDC. Like Ed, I'd buy a couple if the price were to slip enough. I could see Pd eclipsing Pt in some industrial apps. That would bring up the price, somewhat.
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Pillar of the Community
United Kingdom
2624 Posts |
None of us has a crystal ball but we can use history to tell us a thing or two...
When digital camera's became popular silver value dropped since the camera industry no longer demanded it so much.
When catalitic converters appeared platinum rose massively as it was used for that.
Paladium is a relatively rare metal, if a demand appears it has the potential to rocket, so the rewards could be big...the risk is relatively small and the odd's relatively long.
I don't have lots of capital to invest in anything really, if I did I would consider it viable to keep a small amount if I could buy it well.
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Pillar of the Community
United States
4008 Posts |
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Paladium is a relatively rare metal Indeed it is. In fact, the amount produced each year is very close to the amount of platinum that is produced each year. |
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Bedrock of the Community
United States
36780 Posts |
If you truly believe the economy is turning around and improving, then palladium and platinum might be a good investment. These two metals are primarily used in industry.
I would rather put my money in both gold and silver as they are monetary metals as well as used in industry. With 16 trillion dollars in USA debt and climbing, I can see far more hurt coming before things get better.
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Pillar of the Community
United States
4008 Posts |
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If you truly believe the economy is turning around and improving... Yes, there's the rub. The fact is, the economy has always turned around and improved after a recession or depression but assuming that it always will could be a form of normalcy bias. Just because it always has does not mean that it always will, just that it should. One of these days we may very well be confronted by the economic "big one" that will make the Great Depression of the 1930s look like a church social by comparison. No one knows when or even if that will ever happen... but it might. Got preps? Quote:
I would rather put my money in both gold and silver as they are monetary metals as well as used in industry. True. There really is no going wrong with the two metals that have been money for more than 4,000 years. There is an interesting factoid, though. When the price of Pt dips below that of Au, there has been about a 67% rise in the price of Pt in the 2-3 years following that dip. If this were to recur and one had a good amount invested in some Pt, substantial money could be made and then converted into Au and Ag. Whether or not this will happen again is not known but anything that has happened before can happen again. I have a small investment in the PPLT physical Pt ETF as a test of this possibility. It will be interesting and, hopefully, profitable to see if this comes true again. |
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Bedrock of the Community
United States
36780 Posts |
Good points Ed, but my feeling is we are now in uncharted financial territory. We can't compare the past to the situation we are in now. Each day more of the domino's fall. City, State, Country bankruptcies. Pension funds broke. A derivatives market that people don't even know how big it is or how under funded. Libor rates faked. I could go on about all that is going wrong at the same time. I'm just not sure that Pt, which is primarily an industrial metal used in the auto industry, is going to give anyone the return that gold will over the next few years.
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Pillar of the Community
United States
4008 Posts |
You could very well be right, IGE. Your points are valid as well. I agree 100% that we are sailing in uncharted waters these days. I am a student of the US stock market and have followed / invested in it for over 35 years. The stock market of today does not bear a lot of resemblance to the stock market of the 1970s, 1980s, or 1990s. High frequency trading, naked PM shorting, massive paper PM sales on a moment's notice, and gov / Fed market manipulation have all had their effects... and for the worse, I might add! While we can't depend on all of the experience we have from years past, we can depend on some very general and basic principles... for the time being. Yes, even this could change and likely will change before all is said and done on this issue.
My best advice to others is to keep your eyes and ears wide open, gather all of the info that you can, weigh it carefully to see if it passes the "sniff test". If it does, then incorporate it into your financial philosophy. Above all, do not depend on any white knight to come riding over the hill to save you. When, not if, it hits the fan, it is very likely that family, friends, and neighbors will be all that we have to deal with whatever situation occurs.
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Bedrock of the Community
United States
36780 Posts |
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Pillar of the Community
United States
4008 Posts |
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You are a wise man Ed_B! We both must be as we are in good agreement on most issues!  |
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Valued Member
Canada
491 Posts |
Pt has some clear advantages right now over Pd. The restrictions that we have in Western Economic zones are now being implemented in the faster growing regions of the world. Pd was used as a replacement in most catalytic converters until the price rose so much that the inefficient Pd (65% conversion of gasses compared to Pt) made Pt the go to metal again. The current pricing will not last as miners are cutting back on production. Recycling has not changed it still provides 44% of the metal for industry.
Regardless what happens with the banks we all need to live our lives and that includes buying new vehicles with catalytic converters and replacing old ones all around the world. More strikes will happen to the miners....guaranteed or the governments will just steal them and run them poorly.
I like Pt have some and will be buying some more, shucks the Indians are even buying instead of Gold for jewellery since its cheaper and more rare.
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Replies: 13 / Views: 1,975 |
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Posted 07/09/2012 07:42 am
