Best of the Week
Most Popular
1. Will Gold Price Breakout? 3 Things to Watch… - Jordan_Roy_Byrne
2.China Invades Saudi Oil Realm: PetroDollar Kill - Jim_Willie_CB
3.Bitcoin Price Trend Forecast, Paypal FUD Fake Cryptocurrency Warning - Nadeem_Walayat
4.The Stock Market Trend is Your Friend ’til the Very End - Rambus_Chartology
5.This Isn’t Your Grandfather’s (1960s) Inflation Scare - F_F_Wiley
6.GDX Gold Mining Stocks Fundamentals - Zeal_LLC
7.US Housing Real Estate Market and Banking Pressures Are Building - Chris_Vermeulen
8.Return of Stock Market Volatility Amidst Political Chaos and Uncertain Economy - Buildadv
9.Can Bitcoin Price Rally Continue After Paypal Fake FUD Attack? - Nadeem_Walayat
10.Warning Economic Implosion on the Horizon - Chris_Vermeulen
Last 7 days
What to Expect at a Critical Stock Market Point: End of a Wave 2 Rally - 26th Apr 18
A New Lithium War Is About To Begin, Modern Gold Rush! - 26th Apr 18
Silver, silver, and silver! There’s More Than Silver, People! - 26th Apr 18
How to be Financially Prepared When Purchasing Your First Home - 26th Apr 18
Is a Stock Market Crash Imminent or Does this Stock Market Bull Still Have Legs - 25th Apr 18
Gold Price Focusing on May Cycle Bottom - 25th Apr 18
Cash “Vanishes” From Bank Accounts In Ireland - 25th Apr 18
Is the Malaysian Economy a Potemkin Village - 25th Apr 18
Land Rover Discovery Sport Rattling / Knocking Sounds From Car Pillars - 25th Apr 18
China Takes the Long View on Gold-Silver... and So Should You - 25th Apr 18
Russia Buys 300,000 Ounces Of Gold In March – Nears 2,000 Tons In Gold Reserves - 24th Apr 18
Stock Market Study Shows Why You Shouldn’t “Sell in May and Go Away” - 24th Apr 18
CRYPTOCURRENCY MASTERCLASS #CRY90 - 24th Apr 18
UK Gambling Statistics - What the Numbers Say - 24th Apr 18
Chaos Capitalists Short Countries - How Chanos Got China Wrong - 24th Apr
Artificial Intelligence Defines the Political News Narrative - 24th Apr 18
Stock Market "Oops, They Did It Again" - 24th Apr 18
Fox in the Henhouse: Why Interest Rates Are Rising - 23rd Apr 18
Stocks and Bonds, This is Not a Market - 23rd Apr 18
Happy Anniversary Silver Investors! - 23rd Apr 18
The Hottest Commodity Play In 2018 - 23rd Apr 18
Stock Market Correction Turns Consolidation - 23rd Apr 18
Silver Squeeze, Gold Fails & GDX Breadth - 23rd Apr 18
US Economy Is Cooked, the Growth Cycle has Peaked - 23rd Apr 18
Inflation, With a Shelf Life - 23rd Apr 18 - Gary_Tanashian
Stock Market Predictive Modeling Is Calling For A Continued Rally - 22nd Apr 18
SWEATCOIN - Get PAID to WALK! Incentive to Burn Fat and Lose Weight - Review - 22nd Apr 18
Sheffield Local Elections 2018 Forecast Results - 22nd Apr 18
How Long Does it take for a 10%+ Stock Market Correction to Make New Highs - 21st Apr 18
Sheffield Ruling Labour Party Could Lose 10 Council Seats at May Local Elections - 21st Apr 18
Crude Oil Price Trend Forecast - Saudi Arabia $80 ARAMCO Stock IPO Target - 21st Apr 18
Gold Price Nearing Bull Market Breakout, Stocks to Follow - 20th Apr 18
What’s Bitcoin Really Worth? - 20th Apr 18
Stock Market May "Let Go" - 20th Apr 18
Overwhelming Evidence Against Near Stock Market Grand Supercycle Top - 20th Apr 18
Crude Oil Price Trend Forecast - Saudi's Want $100 for ARAMCO Stock IPO - 20th Apr 18
The Incredible Silver Trade – What You Need to Know - 20th Apr 18
Is War "Hell" for the Stock Market? - 19th Apr 18
Palladium Bullion Surges 17% In 9 Days On Russian Supply Concerns - 19th Apr 18
Breadth Study Suggests that Stock Market Bottom is Already In - 19th Apr 18
Allegory Regarding Investment Decisions Made On Basis Of Government’s Income Statement, Balance Sheet - 19th Apr 18
Gold – A Unique Repeat of the 2007 and How to Profit - 19th Apr 18
Abbeydale Park Rise Cherry Tree's in Blossom - Sheffield Street Tree Protests - 19th Apr 18
The Stock Market “Turn of the Month Effect” Exists in 11 of 11 Countries - 18th Apr 18
Winter is Coming - Coming Storms Will Bring Out the Best and Worst in Humanity - 18th Apr 18
What Does it Take to Create Living Wage Jobs? - 18th Apr 18
Gold and Silver Buy Signals - 18th Apr 18
WINTER IS COMING - The Ongoing Fourth Turning Crisis Part2 - 18th Apr 18
A Stock Market Rally on Low Volume is NOT Bearish - 17th Apr 18
Three Gold Charts, One Big Gold Stocks Opportunity - 17th Apr 18
Crude Oil Price As Bullish as it Seems? - 17th Apr 18
A Good Time to Buy Facebook? - 17th Apr 18
THE Financial Crisis Acronym of 2008 is Sounding Another Alarm - 16th Apr 18
Bombs, Missiles and War – What to Expect Next from the Stock Market - 16th Apr 18
Global Debt Bubble Hits New All Time High – One Quadrillion Reasons To Buy Gold - 16th Apr 18
Will Bitcoin Ever Recover? - 16th Apr 18
Stock Market Futures Bounce, But Stopped at Trendline - 16th Apr 18
How To Profit As Oil Prices Explode - 16th Apr 18
Junior Mining Stocks are Close to Breaking Downtrend - 16th Apr 18
Look Inside a Caravan at UK Holiday Park for Summer 2018 - Hoseasons Cayton Bay Sea Side - 16th Apr 18
Stock Market More Weakness? How Much? - 15th Apr 18
Time for the Gold Bulls to Show their Mettle - 15th Apr 18
Trading Markets Amid Sound of Wars - 15th Apr 18
Sugar Commodity Buying Levels Analysis - 14th Apr 18
The Oil Trade May Be Coming Alive - 14th Apr 18

Market Oracle FREE Newsletter

Trading Lessons

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

© 2005-2018 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