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This forgotten metal is up 19% this year... And it's about to double!

by , 13 June 2014

There's one ignored precious metal that's gained nearly 20% this year.

It's not gold or silver.

The thing is, if you want to find investment opportunities, you have to look in often forgotten - but still in demand - places.

And this precious metal is in for another run!

Let me explain...

Three things that have choked the supply of this one metal will see your profits soar
 
I’m talking about palladium. It’s already gained 19% this year. To compare, that’s just about DOUBLE the JSE’s puny 9.5% return.
 
So why did palladium have such an amazing run?
 
It has to do with the shortages in the platinum-group metals (PGM) supply chain problem… Which has been going on since last year.
 
This problem will continue to send the metal sky-high for three reasons:
 
Firstly, palladium is 15 times rarer than platinum. Making it more susceptible to the supply problems plaguing the mining sector.
 
Secondly, Russia is the largest producer of palladium – Supplying 40% of the world’s palladium. And the political upheaval in eastern Europe thanks to Russia’s annexation of Crimea and the economic sanctions it has triggered have interfered with Russian palladium exports.
 
And thirdly, the South African supply has been limping along by the six month mine strikes. The thing is, it’s had a domino effect. It’s so bad that our mining output has plunged more than 24% annualised in just the three months since March.  
 
So, that’s the supply problem of the metal. Then there’s the demand…
 
Why the demand will keep palladium’s price ticking 
 
It’s worth noting that palladium is a powerful metal. 
 
You see, it’s a tangible asset that holds real value and the metal has great industrial uses. For example, it’s a key component in catalytic converters in the auto industry and it’s also used in electronics.
 
The world has recovered from the 2008 financial crisis. Because of this, car sales have soared – Sending the demand of palladium through the roof. Take a look at the table to see how global demand has been increasing:

Year Car sales (millions)
2010 73.2
2011 76.7
2012 79.5
2013 82.8
 
So when you look at it from both the supply and demand side, the world is running short of palladium… Fast!
 
And there’s one simple way for you to play it.
 
How you can snag a quick and easy 19% 
 
The best way to play this trend is through the NewPalladium ETF issued by Absa. You can visit www.etfsa.co.za to invest in this ETF.
 
It’s a heck of a lot easier and safer to buy this ETF than buying the physical metal itself. 
 
And thanks to the supply and demand problems, I believe within the next six months you can make a quick 19% return… And in the following year or two this should double.
 
Thrive in your possibilities,
 
Jonathan Bachrach
 


This forgotten metal is up 19% this year... And it's about to double!
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