My Palladium Call … Then and Now

Boy, do I wish I could do things like this ALL the time!

Back on March 16, I recommended you look into palladium via the exchange-traded fund (ETF) Aberdeen Standard Physical Palladium Shares ETF (NYSE: PALL).

Turned out to be good timing …because if you took my advice, you saw platinum’s ‘cousin’ skyrocket to 20% gains on May 3rd when it topped $3,000 an ounce for the first time ever!

And apart from a sharp correction in mid-June, you’ve been in the green ever since.

Hmm … I wonder if I can do this again.

Because palladium could be setting up for another leg higher.

Look at this chart:


 

After last year’s pandemic-triggered “flash crash,” PALL went into a big, bullish rally.

Since May, it’s been coiling up in a symmetrical triangle. This kind of coiling comes before a big move, up or down. I think it could potentially be way, way up.

One of the four metals in the “precious metals” group, palladium is 30 times rarer than gold and more precious than all the other precious metals. That makes it a safe haven in times of uncertainty … like the past 18 months.

It’s also a commodity — used in catalytic converters for gasoline engines.

Most palladium is produced as a by-product of platinum mining and nickel smelting, and it comes from just a handful of countries — mostly from Russia and South Africa (the U.S. produces only 5-6% of new supply). That makes the price sensitive to supply disruptions and shortages.

That’s a good thing for investors!

And with vehicle sales climbing — and tighter car emission standards across the board — demand for palladium looks poised to go up.

On the other hand, predictions are that — until 2024 — there won’t be a major increase in supply.

Standard Chartered analyst Suki Cooper says this:

“Elevated investor interest makes the market susceptible to profit-taking, but dips are likely to be viewed as buying opportunities.”

So, I’m following the current dip in palladium and looking for that breakout.

And so might you.

Remember to do your own due diligence before buying anything.

One option is with Aberdeen Standard Physical Palladium Shares ETF — the ETF I mentioned earlier.

All the best,

Sean

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