From Palisade Research: Don’t look now, but Palladium reached a new all-time high.
Less than one month ago we wrote an article preparing you for the coming shortage in palladium.
But these kinds of gains for palladium and palladium stocks could be just the beginning.
As we talked about, there is a looming shortage for the metal.
A deficit of one million ounces is likely to happen this year alone.
“The metal is forecast to be in a deficit of about 835,000 ounces this year, according to Citigroup Bank”
The rapid growth of the Chinese car industry – which is palladium’s most important use – is more than the market expected.
That’s because palladium’s unique properties make it paramount in the fight against pollution.
The metal is used inside a vehicles catalytic converter – made to prevent harmful exhaust fumes and emissions from gasoline fueled automobiles.
As the world continues to go “green” and fight against environmental damage and air toxins, critical metals such as palladium will be more important than ever.
But this is a huge problem. . .
Because there just isn’t enough palladium being mined.
And until new palladium deposits are discovered – annual shortages of one million could be considered small.
Don’t worry – there is a brightside to all of this. . .
Growing market demand and declining supplies will push prices much higher.
And the companies that have ample palladium reserves in the ground will be gobbled up at huge premiums by industries that need to get it out of the earth – at any cost.
As investors, this puts palladium in exactly the kind of position we want.
It’s better to not wait until palladium is up another 56% like it was last year in 2017, especially as shortages are becoming a reality. . .
Like we say, “pick right, sit tight.”
The ETFS Physical Palladium Shares ETF (PALL) was unchanged in premarket trading Thursday. Year-to-date, PALL has gained 1.93%, versus a 2.72% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Palisade Research.