Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
Brexit Party and Lib-Dems Pull Further Away from Labour and Tories in Latest Opinion Polls - 22nd May 19
The Deep State vs Donald Trump - US vs Them Part 2 - 21st May 19
Deep State & Financial Powers Worry about Alternative Currencies - 21st May 19
Gold’s Exciting Boredom - 21st May 19
Trade War Fears Again, Will Stocks Resume the Downtrend? - 21st May 19
Buffett Mistake Costs Him $4.3 Billion This Year—Here’s What Every Investor Can Learn from It - 21st May 19
Dow Stock Market Trend Forecast 2019 May Update - Video - 20th May 19
A Brief History of Financial Entropy - 20th May 19
Gold, MMT, Fiat Money Inflation In France - 20th May 19
WAR - Us versus Them Narrative - 20th May 19
US - Iran War Safe-haven Reasons to Own Gold - 20th May 19
How long does Google have to reference a website? - 20th May 19
Tory Leadership Contest - Will Michael Gove Stab Boris Johnson in the Back Again? - 19th May 19
Stock Market Counter-trend Rally - 19th May 19
Will Stock Market “Sell in May, Go Away” Lead to a Correction… or a Crash? - 19th May 19
US vs. Global Stocks Sector Rotation – What Next? Part 1 - 19th May 19
BrExit Party EarthQuake Could Win it 150 MP's at Next UK General Election! - 18th May 19
Dow Stock Market Trend Forecast 2019 May Update - 18th May 19
US Economy to Die a Traditional Death… Inflation Is Going to Move Higher - 18th May 19
Trump’s Trade War Is Good for These 3 Dividend Stocks - 18th May 19
GDX Gold Mining Stocks Fundamentals Update - 17th May 19
Stock Markets Rally Hard – Is The Volatility Move Over? - 17th May 19
The Use of Technical Analysis for Forex Traders - 17th May 19
Brexit Party Set to Storm EU Parliament Elections - Seats Forecast - 17th May 19
Is the Trade War a Catalyst for Gold? - 17th May 19
This Is a Recession Indicator No One Is Talking About—and It’s Flashing Red - 17th May 19
War! Good or Bad for Stocks? - 17th May 19
How Many Seats Will Brexit Party Win - EU Parliament Elections Forecast 2019 - 16th May 19
It’s Not Technology but the Fed That Is Taking Away Jobs - 16th May 19
Learn to Protect your Forex Trading Capital - 16th May 19
Gold Ratio Charts Offer The Keys to the Bull Market - 16th May 19
Is Someone Secretly Smashing the Stock Market at Night? - 16th May 19

Market Oracle FREE Newsletter

U.S. House Prices Analysis and Trend Forecast 2019 to 2021

Invest in Cold Fusion Energy and Palladium

Commodities / Palladium May 18, 2009 - 07:16 PM GMT

By: Roland_Watson

Commodities

Best Financial Markets Analysis ArticleCold Fusion, that pariah of established science, made a comeback in March as the US Navy's Space and Naval Warfare Center went public with results which they believed confirmed that low energy nuclear reactions were present, repeatable and decisively demonstrable in their specialized palladium/heavy water experiments.


I won't bother you with the science of their research (more details here) suffice to say that the debate is again polarized on both sides with supporters calling it an important step in the long road to commercial products while the detractors continue to call it bad science.

However, the assets leveraged towards this kind of announcement hardly reacted at all in price when the press release was made. One gets the feeling the reaction was "We have seen this before" and they would be right to some extent. Exactly twenty years before, the infamous Pons and Fleischman press conference offered to the world a potential new source of energy which was abundant and free from the waste problems associated with conventional nuclear power. Any bull market in Cold Fusion components was quickly snuffed out though as the scientific establishment turned against the two scientists. And that was that for twenty years.

So, will this announcement amount to anything bigger than a hill of radioactive beans? Research institutions across the world that saw some potential in the phenomenon poured millions of dollars since 1989 to no seeming avail. The process was observed successfully in many instances but the scientific mantra of repeatability collided against a volatile and unruly excess heat effect that didn't quite play to the scientific gallery.

Perhaps this time finally the Space and Naval Warfare Center have tamed and caged the Cold Fusion tiger. You can take your side in the debate but if this becomes the real deal will you be positioned to take advantage? As a result of that announcement, I undertook an investigation of the investment potential for Cold Fusion and the best candidates to invest in at this point in time. That is now published in a Cold Fusion Investment Report of which details below.

Those familiar with this investment paradigm will probably say three things - palladium, SWC, PAL and that's all you need to know. In our report we take a look at these three assets (amongst others) and look further afield to where the future of cold fusion investing may lie. We ask some questions such as:

  1. Is palladium the only metal that can bring about the Cold Fusion effect?

  2. What is the better mining company: SWC or PAL?

  3. What about the other palladium mining companies?

  4. Why do some forms of palladium not produce Cold Fusion and does that affect some refined palladium products?

  5. What is a realistic price projection for palladium if Cold Fusion is commercialized and would such a price make it uneconomical to use?

  6. What would be the reaction of governments to such a new and strategic resource?

The world of Cold Fusion investing is not black and white as it may appear and the failed attempt of one promising but now defunct Cold Fusion company (see the report) testifies to the fact that one should not jump on the first bandwagon that takes to that road.

Take for example the question of government. What has government got to do with this anyway? Well for a start they funded the research mentioned at the top of the article but more importantly any resource that attains strategic importance begins to get more and more State attention.

Back in 1933, gold ownership was banned as US government policy morphed into a socialist scenario that saw "public necessity" trump individual wealth preservation. The same held true of silver in 1934 but for larger bullion amounts.

If palladium becomes a saviour of alternate energy policy, does government stand back and let the free market take the price of palladium to the stratosphere or will they act to seize all palladium holdings, freeze the various palladium ETFs and license the output of palladium mines in their domain? It is a likely scenario but when and how is as yet unknown. The remit of the investor is to see the telltale signs of government rumblings and exit quickly (for example, Roosevelt banned all silver exports just days before the executive order confiscating large private holdings of silver bars).

Another example is the supposed leverage that palladium mining companies offer over the metal. This is a well known strategy amongst precious metals investors but during the palladium bull of 1999-2001, Stillwater Mining Company miserably underperformed palladium. Why was that and how can one decide the mix of bullion and equities as such a future time? Well, you can't but investors at least need to be aware of the risks involved ahead of time.

Cold Fusion is real, but the transformation from a scientific experiment to a commercial product is not there yet. If (or when) it happens and commercial companies begin to pour serious money into finally nailing down the process, I believe palladium will begin a bull market that will dwarf the one that spiked to nearly $1100 per ounce on Russian stockpile problems.

By Roland Watson
http://silveranalyst.blogspot.com

Further analysis of the SLI indicator and more can be obtained by going to our silver blog at http://silveranalyst.blogspot.com where readers can obtain the first issue of The Silver Analyst free and learn about subscription details. Comments and questions are also invited via email to silveranalysis@yahoo.co.uk .

Roland Watson Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules