$1000 Palladium

Here's a beautiful chart.

But apart from the pretty colors and stuff, I also think it's quite bullish. Palladium has been totally flat in 2011. Whether we break out of this pennant now, or drop another 5% and test the lower line at $750 one more time, I'm gonna go ahead and call for $1000 palladium by year's end. Keep in mind that its all time high was ~$1100, during the NASDAQ bubble.


Louis Cypher said...

Nicely done GM. There are lots and lots of fundamental reasons why Palladium should be valued higher than it's current 800 bucks per oz and I am not talking about cats for cars. Hydrogen storage etc.
It really has amazing properties. So as long as the shit doesn't completely hit the fan sometime in the the next 6 months there is no reason not to be bullish on Palladium.

GM Jenkins said...

It popped above the pink line today. Let's see if it can create some distance this week . . .

Did you once mention that JPM doesn't have the heavy hand in palladium that it has in silver and platinum?

Louis Cypher said...

Yup I did mention it in an email to you. I like watching Palladium as a pure commodity play as an indicator for Silver. I can't remember where I picked up the info on Platinum having JPM's filthy paws all over it (it may have been one of Martin's essays) whereas Palladium they don't bother with.
Too small a market I guess and the fact that one convicted small time trader was able to consistently bang the close on Palladium means that the big boys don't care too much about it. So it's about as pure a market indicator as we can expect in my opinion.
My main reason for being bullish on it is it has most of the uses of Platinum and then some. Also, with pieces of junk like the sub $4000 cars buzzing around India etc. need the the cheapest cats possible.