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Thread: Palladium and China

  1. #1

    Default Palladium and China

    Gold and Platinum have recovered much of the ground lost last August with Gold making yesterday a fresh year highm, silver and Palladium are way behind .while Platinum is just 4% below its year high, Silver and Palladium are still 15% below their contract high. Why? The common view is that Silver and Palladium may suffer more from an economic slowdown because they are heavily used by manufacturing industries. This simply makes no sense to me: Platinum and Palladium have the same end uses and same demand components. Another common view is that Platinum is in supply deficit while Palladium is in surplus: this is simple not true: the latest figures from producers (see Implats latest conference call) point to much better fundamentals for Palladium from last year and the most important factor that is going to reshape the fundamental balance of the Palladium market is China:during the first half of this year, China manufactured 4.5 million automobiles, up 22.4 percent year on year, These latest figures coming out of China makes me more and more bullish on Palladium: it looks like that the Chinese need of PGMs is already starting to impact the maketplace.
    A full research on China and its expected impact on palaldium demand and supply can be found here:
    http://valuearea.blogspot.com/2007/0...palladium.html

    I believe that this is a great buying opportunity for Silver and Palladium: they will eventually catch up with Gold and Platinum.

  2. #2

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    which do you think is the better buy?

  3. #3

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    I bet on Palladium....there is too much bearishness aroud it....
    I think it is a long term play not fast money, but great upside potential over the next few years

  4. #4

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    Quote Originally Posted by orsa_maggiore View Post
    I bet on Palladium....there is too much bearishness aroud it....
    I think it is a long term play not fast money, but great upside potential over the next few years
    The way I make money investing is via buying things that are beaten down. Palladium is rare and it's used in industry. It's not like paper stock or bonds that can become worthless. The current Palladium valuation is a gift. I just wish I had more to put ito it.

  5. #5

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    Now that many of my beaten down energy stocks are coming back and making a profit I will be turning my profits into Palladium bullion. Most of the time when I get some profits everything else I want to buy is up too, but his time it is indeed a gift.

    Quote Originally Posted by joe32 View Post
    The way I make money investing is via buying things that are beaten down. Palladium is rare and it's used in industry. It's not like paper stock or bonds that can become worthless. The current Palladium valuation is a gift. I just wish I had more to put ito it.

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