Thursday, May 22, 2014

Bullish overview on Platinum and Palladium

I have been talking about how undervalued the platinum group metals are and how I expect them to move higher. Here is a bullish overview with arguments on why the price of platinum and palladium are outstanding speculations. I am playing this trend via Sylvania Platinum.

Because underneath the headlines lies an irreparable situation with the PGM (Platinum Group Metals) market, one that will last at least several years and probably more like a decade. This market is teetering on the edge of a supply crunch, one more perilous than many investors realize. As the issues outlined below play out, prices will be forced higher—which signals that we should diversify into the “other” precious metals now. The basic problem is that platinum and palladium supply is in a structural deficit. It won’t be resolved when the strikes end or Russia simmers down.

The article goes on to discuss six reasons why the price for platinum and palladium are heading much higher including the high structural costs that can only be fixed by shutting existing money losing production which will only make for a bigger shortage and force the price that much higher.

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