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 Replies: 19 / Views: 3,575 |
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Pillar of the Community
United States
1055 Posts |
I avidly collect classic US coins (as many of you know) and have dabbled here and there in PM's. My problem is that after I buy some PM's I find a nice buffalo or type coin I need for my set and sell them off to buy the classic coin. I do want to start building a PM portfolio and was wondering what you guys thought about this metal. It seems that it is less popular and partly overlooked in comparison to silver,gold, platinum...but over the last couple years it too has seen significant gains ($100+/oz.) I am looking at these metals as a long term deal, also it is not like I would be spending money but trading my paper for the metal which is very liquid and can be turned back into cash easily. Also wanted to add I would be looking at getting some silver,gold, platinum, and possibly palladium to cover the bases. BTW Palladium is up $18 today... Any thoughts? |
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Pillar of the Community
United States
3098 Posts |
I have a few bars. Looks like a good move now since the money for them came from selling gold.
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Pillar of the Community
United States
4846 Posts |
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Pillar of the Community
Canada
1733 Posts |
Palladium is a great metal to get into in my opinion. The reason I believe this to be true is that; it's second most popular industrial use (electronics) is on the upswing and it's primary industrial use in automotive catalysts will also rebound while mining and re-refining from recyclables has hit a more or less static level.
So generally I like it as a buy. I have only a few coins that can be labeled bullion though, I will buy recognized bars since they introduce less of a premium than coins.
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Pillar of the Community
United States
3098 Posts |
All of mine are CS bars, which look like this   |
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Pillar of the Community
United States
851 Posts |
What about Rhodium too? Do you think it is just a "fad"?
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Pillar of the Community
United States
3098 Posts |
Rhodium is a "similar" metal, but similar in the fact that it's extremely volatile. There's no real market for bullion Rh yet, because I think around 80% of rhodium is used in industrial applications. Also, look at the historical prices. In 2008 pre-recession, it was at 12k/oz. Directly after, when gold went to $700s, silver to $10, Pd to $180s, Pt to $900s, Rh was near $1000. That baby lost value faster than a car!
But, if you do want to buy Rh, kitco.com has them in sponge form. It's basically dust in a sealed bottle, ready for industrial uses. I think people who are investing in Rh as a metal is just in the fad of owning something that could have huge returns, but not so much a big market.
But for Pd, I'd watch out too. It's becoming more popular in industry too as a companion of or replacement for Pt, and there are actually physical supplies of it. Also to keep in mind, there is a big physical market for it and it's growing! But with all investments, there is the risk of loss.
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Pillar of the Community
United States
1285 Posts |
Pd is my favorite between Pt and Pd. The Russians had a large stockpile of Pd (forget the exact number). But based on my DD that stockpile is now in the hands of the Swiss and US banks as collateral. The banks in return have been selling it off over the last 2 years. By my guesstimate there MIGHT be only 1 or 2 YEARS worth of excess supply out there. The new ETF's (PALL = palladium, PPLT = Platinum) have also increased further demand are are pulling available supply from the market. Further case for Pd is that it is being used for hybrid (electric) cars. The case here is that apparently if you use Pd as a catalyst you can improve the efficiency / charge of a battery by about 5 to 10 fold. Some of this science is way over my head and please do your own DD. Also the Chinese and Japanese individuals prefer these 2 metals for their jewelry needs. As for Pt - The South African situation is the key to this. Also Pt is the "preferred choice" as a catalyst for diesel engines. Diesel is well received in Europe. India and China's build out is good as they would need heavy diesel machinery (CAT etc) and trucks (to move about goods) which require Pt. Right now both are in a melt up phase and I would NOT initiate a new position but rather wait for a pull back. Pd has a lot of support in the 480 to 500 area and PT around 1600. Pt and PD when dumped over shoot on the downside and vice versa on the upside. I am in it for the long haul (5 plus years) and not as a short term trade. For anyone interested in Rh. There is a pool account at kitco through which you can invest. Also their message boards are a worth while read and are sorted by PM. https://www.kitcomm.com/ Peace |
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Bedrock of the Community
United States
20753 Posts |
If collecting any metals or actually anything for possible monitary growth, always look into the resale possibilities. Even with coins most people don't realize if your purchase a coin for a certain amount, there is no guarantee the resale of that coin could even come close to the investment. And for metals not commonly traded, the possibilities of resale may be much less.
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Pillar of the Community
United States
1285 Posts |
Just my spec - I think Pt and Pd are ready for another leg up after this long 2 month consolidation.
Peace
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Pillar of the Community
Philippines
1156 Posts |
as long as Pd comes in crown sized coins, I'll collect them, otherwise too expensive to add as a branch in my collecting tree  |
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Pillar of the Community
Australia
3831 Posts |
Here's one proof palladium and one UNC. They look quite different.   |
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Rest in Peace
United States
4849 Posts |
Quote:
My problem is that after I buy some PM's I find a nice buffalo or type coin I need for my set and sell them off to buy the classic coin. Funny, I have that EXACT same problem! Which is why I tend to gravitate towards classic pre-33 gold, so I can do both simultaneously. |
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Pillar of the Community
Luxembourg
588 Posts |
A few years ago palladium went way up - if I remember well from 200$ to 1200$. At that tie many many coins have been melted down.
After that it went again downwards. Due to this older palladium coins have become very rare.
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Bedrock of the Community
Australia
21786 Posts |
Tonga and Australia issued NCLT palladiun coins
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Pillar of the Community
United States
1285 Posts |
FWIW, Both Pt and Pd have taken out upper bands of technical resistance at 1725 for Pt and 596 for Pd on heavy volume. These 2 numbers will now be primary support until broken.
"Supposedly" there is not much physical metal inventory out there to be had in the open cash market and Supply demand factors from industry are moving these 2 metals (I do not buy the lower $ theory) and as always do your own dd.
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Replies: 19 / Views: 3,575 |
Posted 04/14/2010 5:12 pm
