The Precious Metals

Back in October of 2005, I made a great call about Palladium and Platinum. I said:

My guess, it (Palladium) has made a huge base and if it breaks out, $340 would be the first target (up 53%). (Palladium did break out and the high in 2008 was $585!)

Palladium has an advantage over gold, in that there doesn’t seem to be the concerted effort by federal officials and politicians to hold the price down.

The monthly chart of Platinum looks similar to the gold chart, up 100% from its lows in 2001, and also doesn’t have the gold stigma attache. (Platinum about $900 at the time peaked in 2008 over $2,000 an ounce.)

My reason for bringing this up is this latest from Fuller Money

My view – Gold (p&f, monthly, weekly, daily and inflation adjusted) continues to merit investor interest but it is not the best-value metal today. Platinum (p&f, monthly, weekly, daily, inflation adjusted & relative to gold monthly & daily) is cheaper and just beginning to recover.

So here we are at the end of 2008 and Palladium is back to its lows of 2003 to 2005 and Platinum is back to the $800 area of 2005.

There’s been a relationship between the three metals and to me, Gold looks like 2008 since the peak at over $1,000, has been consolidating. Now it looks ready to break out again to new all time highs.

All the metals look attractive!


4 Responses to “The Precious Metals”

  1. I kind of get the feeling too that gold is going to break out this coming year. But mostly because I see the dollar tanking.

    I just finished watching the I.O. USA video and it scares me quite a bit as we go into the new year.

    Here’s another video from the Wall Street Journal worth looking at: How Iceland Collapsed.

    I think a lot of people are going to be turning toward saving money. And gold probably will be one of the modes to that end because I think the dollar will be toast. I see from ExactPrice that gold is taking off after close today and is at 883.90 right now. Given it all I am beginning to wonder if Peter Schiff’s prediction isn’t right about it going through the roof in ‘09. He claims $2,000 an ounce will likely be hit.

    My only problem with platinum is that I’m not sure that the auto industry is going to recover in the next couple of years and that metal is tied there pretty closely.

  2. The Precious Metals. Posted on December 31st, 2008 by MoverMike.

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