Posted: 1/31/2004 12:34:37 PM EDT
|
I was researching precious metals last night and came across palladium. I've always been interested in them but never had enough money to really invest in anything other than a couple ounces of silver, being the typical "poor college student". However, this metal is at less than $250/oz. and was up to around $1000/oz. in the last couple years. It is my understanding that it is much more rare than gold, so i don't think it will drop much below this price. Any opinions on it? I think I will buy a couple ounces, unless someone can suggest a better low risk investment. |
| I'm not sure that this metal is going to be important to the ordinary JOe & Josephine on the street. At one time it was super important because it was one of the metals(along with platinum) in the automotivecatalytic converters, but the automotive industry came up with a cheap alternative, and now the importance of the metal has fallen, thus its price. At one time automotive catalytic converters threaten to consume 110%(or somehting like that) of the world's supply of platinum & palladium. These metals are still being used in the petrochemcial industries, but not even close to the scale as before, so that is why there is a tremendous drop in prices. |
|
All metal prices are going up due to the dollar losing its value. Palladium is an industrial metal and might be more difficult to trade. But it has been going up lately as industry is switching from platinum to palladium for it's needs. The two metals teeter totter with each other. Also look into investing in the mining companies that produce it (look at how mining companies all together have performed in the past 1.5 years, it will probably last for a while too.) www.kitco.com usually has some interesting info/links |
|
The market for palladium is real thin. About the best way to invest in gold is to buy gold producer stocks. They went on a tear last year, they've been selling off hard this month even though the over all gold market is still quite bullish and high above the 200 day moving average. |