Palladium is the year’s hottest commodity.
Palladium, as you may know, is a key industrial metal. It goes into everything from dental fillings to fuel cells. But its primary use is for catalytic converters in automobiles. These devices reduce how much pollution cars and trucks emit. They account for about 75% of palladium demand.
Last week, the price of palladium surged 11%. It was the metal’s biggest weekly gain since March. Palladium is now the year’s top-performing major commodity, according to Finviz.
There’s good reason to think that palladium will keep rallying, too. As you can see in the chart below, the metal is in a clear uptrend. This is a bullish sign. It means palladium will likely keep rising.
• The fundamentals for palladium also look good…
MarketWatch reported on Friday:
Analysts at precious-metals consultancy Metals Focus said in a recent report that “automotive demand should post another record high,” driven by healthy demand in China and the U.S. Palladium is used in automobile catalytic converters.
Retail investors are also loading up on palladium. According to The Bullion Desk, retail investors have already bought more than 5,000 ounces of palladium through exchange-traded funds (ETFs) this year. This represents a serious shift in sentiment. Last month, investors liquidated 180,000 ounces of palladium through ETFs.
• Platinum has also taken off this year…
Like its cousin palladium, platinum is used extensively in catalytic converters. Unlike palladium, however, platinum also ends up in a lot of rings, necklaces, and bracelets. According to specialty chemicals company Johnson Matthey, jewelry accounts for about a third of platinum demand.
Platinum is up 8% so far this year, making it the second-best performing commodity of 2017.
• Nick Giambruno, editor of Crisis Investing, expects platinum to keep rallying…
He explained why in the latest issue of Crisis Investing:
There’s a historic anomaly in the platinum market right now.
People call platinum “the richer man’s gold.” That’s because platinum is almost always more expensive than gold. In fact, platinum prices have dipped below gold prices only a few times in the last hundred years.
Now is one of those times.
You can buy nearly one and a quarter ounces of platinum with one ounce of gold. That’s rare.
You can see in the chart below that platinum, priced in gold, is now at an all-time low.
• Nick expects platinum to return to its historical average…
There are only two ways this can happen.
One, the price of gold could fall. But Nick doesn’t see that happening. He actually thinks gold prices could skyrocket from current levels.
That means the only way for platinum prices to get back to their historical average is for them to rise even more than gold.
Nick thinks this scenario is far more likely. And to help his readers take advantage of it, he recommended a world-class platinum miner last year.
This company is raking in cash…has almost no debt…and operates in a safe jurisdiction.
And even though it’s already surged more than 12% since the start of the year, the stock is still dirt cheap.
You can learn more about Nick’s top platinum stock by signing up for Crisis Investing today.
Chart of the Day
Uranium stocks have “broken out.”
Today’s chart shows the performance of Global X Uranium ETF (URA). This fund tracks the performance of 23 uranium companies.
Uranium stocks have been in a bear market for almost a decade. But you can see in the chart below that they spent much of last year “carving a bottom.” This is when an asset class stops falling, trades sideways for a while, and then starts rising.
Assets that carve bottoms often keep climbing, and that’s exactly what URA’s done. You can see it’s already up 19% this year. And it’s trading at the highest level since last June.
These are very bullish signs. Still, we don’t think you should blindly buy uranium stocks at this time. After all, the price of uranium is still about half of what it was a year ago. Most uranium miners can’t make money at these prices. In other words, the uranium market is still a very risky place to put your money.
If you’d like to own uranium stocks, we encourage you to stick to the best of the best. Last year, Nick recommended two world-class uranium companies. One of those stocks is up 25% since Nick told his readers about it in November. The other is up 31% in just two weeks.
These are incredible gains for such short periods. But Nick thinks both stocks could hand shareholders returns in excess of 1,000% over the next few years. That kind of return sounds almost too good to be true. But one of Nick’s top uranium stocks soared 3,600% during the last major uranium bull market.
To have a shot at these kinds of returns, sign up for Crisis Investing today. But we encourage you to act soon. After all, uranium stocks are on the move. In fact, Nick’s top uranium stocks surged another 10.2% and 9.6% today. Click here to begin your risk-free trial.
Delray Beach, Florida
January 10, 2017
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