Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Life Sciences Biotech Smaller Cap High Risk Stocks Investing Binge - 24th Jun 21
Central Banks to Keep Buying Gold - 24th Jun 21
Will Gold Survive Hawkish Fed? - 24th Jun 21
The Clean Energy Compound That Could Change The World - 24th Jun 21
Everybody's Getting Rich (and Having Fun) Except Me - 24th Jun 21
WESTERN DIGITAL WDC Stock Trend Analysis - CHIA! - Risk 1 - 23rd Jun 21
AMC Is the Best-Performing Stock in America: Don’t Buy It - 23rd Jun 21
Stock Market Calling the Fed‘s Bluff - 23rd Jun 21
Could Bitcoin Price CRASH Target A Bottom Below $7500? - 23rd Jun 21
Bitcoin and cryptos: Your 'long-term investment'? - 23rd Jun 21
Unlocking The Next Stage Of The Hydrogen Boom - 23rd Jun 21
USDT Ponzi Scheme FINAL WARNING To EXIT Before Tether Collapses Crypto Exchange Markets - 22nd Jun 21
Stock Market Correction Starting - 22nd Jun 21
This Green SuperFuel Could Change Everything For the $14 Trillion Shipping Industry - 22nd Jun 21
Virgin Media Fibre Broadband Installation - What to Expect, Quality of Wiring, Service etc. - 21st Jun 21
Feel the Inflationary Heartbeat - 21st Jun 21
The Green Superfuel That Could Disrupt Global Energy Markers - 21st Jun 21
How Binance SCAMs Crypto Traders with UP DOWN Coins, Futures, Options and Leverage - Don't Get Bogdanoffed! - 20th Jun 21
Smart Money Accumulating Physical Silver Ahead Of New Basel III Regulations And Price Explosion To $44 - 20th Jun 21
Rambling Fed Triggers Gold/Silver Correction: Are Investors Being Duped? - 20th Jun 21
Gold: The Fed Wreaked Havoc on the Precious Metals - 20th Jun 21
Investing in the Tulip Crypto Mania 2021 - 19th Jun 21
Here’s Why Historic US Housing Market Boom Can Continue - 19th Jun 21
Cryptos: What the "Bizarre" World of Non-Fungible Tokens May Be Signaling - 19th Jun 21
Hyperinflationary Expectations: Reflections on Cryptocurrency and the Markets - 19th Jun 21
Gold Prices Investors beat Central Banks and Jewelry, as having the most Impact - 18th Jun 21
Has the Dust Settled After Fed Day? Not Just Yet - 18th Jun 21
Gold Asks: Will the Economic Boom Continue? - 18th Jun 21
STABLE COINS PONZI Crypto SCAM WARNING! Iron Titan CRASH to ZERO! Exit USDT While You Can! - 18th Jun 21
FOMC Surprise Takeaways - 18th Jun 21
Youtube Upload Stuck at 0% QUICK FIXES Solutions Tutorial - 18th Jun 21
AI Stock Buying Levels, Ratings, Valuations Video - 18th Jun 21
AI Stock Buying Levels, Ratings, Valuations and Trend Analysis into Market Correction - 17th Jun 21
Stocks, Gold, Silver Markets Inflation Tipping Point - 17th Jun 21
Letting Yourself Relax with Activities That You Might Not Have Considered - 17th Jun 21
RAMPANT MONEY PRINTING INFLATION BIG PICTURE! - 16th Jun 21
The Federal Reserve and Inflation - 16th Jun 21
Inflation Soars 5%! Will Gold Skyrocket? - 16th Jun 21
Stock Market Sentiment Speaks: Inflation Is For Fools - 16th Jun 21
Four News Events That Could Drive Gold Bullion Demand - 16th Jun 21
5 ways that crypto is changing the face of online casinos - 16th Jun 21
Transitory Inflation Debate - 15th Jun 21
USDX: The Cleanest Shirt Among the Dirty Laundry - 15th Jun 21
Inflation and Stock Market SPX Record Highs. PPI, FOMC Meeting in Focus - 15th Jun 21
Stock Market SPX 4310 Right Around the Corner! - 15th Jun 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Palladium Hitting New Highs While Gold and Silver Test Lows

Commodities / Palladium Sep 06, 2014 - 01:19 PM GMT

By: Jeb_Handwerger

Commodities

Summary

  • Gold, Silver and the junior miners are undervalued hitting three year lows.
  • US dollar, stocks, bonds and equities hitting major highs trading at high valuations as a supposed safe haven.
  • Beware of Black Swan events which come out of nowhere. This could cause capital to flow out of equities into hard assets.
  • Palladium is in a major uptrend in 2014, outperforming all the precious metals.

There is no doubt gold is undervalued and stocks, the US dollar and bonds are way overbought. Globally, investors are flocking to the supposed safety and stability of the US despite rising deficits which are continuing to soar amidst the threat of instability in Asia, Europe and the Middle East. Beware of black swan events and look to protect your assets with positions in gold, silver and the junior miners at near three-year lows.

$GOLD Gold - Spot Price (EOD) CME

Despite the global quantitative easing which sent stocks, bonds and real estate soaring, gold (GLD), silver (NYSEARCA:SLV) and the junior miners (NYSEARCA:GDXJ) are now trading below both the three-year and five-year moving averages. That's very rare. The last time we saw the gold price move below the long-term moving averages was more than 15 years ago in the 1999-2001 bear market. This set the stage for the historic bull market from 2001 to 2007. The Philadelphia Gold and Silver Index rallied more than five times from a low in the mid 40s to over 200.

If you can get gold at a discount to its long-term moving averages, then it's a great buying opportunity. The greatest leverage may be in the junior gold miners. The larger miners (NYSEARCA:GDX) are usually closely correlated to gold, but the smaller miners could generate outsized gains to bullion in the next bull market. For instance, in the 2008-2009 correction we saw the Philadelphia Gold and Silver Index decline from 200 to below 80-more than a 50% decline-even though gold only corrected from $1,000 per ounce ($1,000/oz) to $700/oz.

Now we're seeing higher lows in the $1,200/oz range and the Philadelphia Gold and Silver Index is trading around $100. If gold moves up even $50 or $100/oz, the miners and the index could have much larger percentage gains, so the leverage opportunity is really in the miners. The miners outperformed gold by a wide margin from 2000-2008.

If you're unable to beat the Market Vectors Gold Miners ETF and the Market Vectors Junior Gold Miners ETF, then buy them directly. I try to do my homework and find the smaller junior companies that outperform the large producers and their junior peers. If you find companies that are leading both in fundamentals and technical data, you have a good chance of beating the indexes.

$SILVER Silver - Spot Price (EOD) CME

The long-term charts for silver and the Philadelphia Gold and Silver Index are closely correlated and leading indicators to gold; silver and the miners (NYSEARCA:SIL) will usually top a few months ahead. They were also the strongest gainers after the 2008 crash. Silver has pulled back to lows and the major breakout point from back in 2011 when quantitative easing was announced and silver ran close to $50/oz. Now that it has pulled back to that breakout point again, silver should reverse higher provide leverage and outside gains to gold.

Positions in platinum group metals should be increased. In 2012, I became bullish on platinum (NYSEARCA:PTM) and palladium (NYSEARCA:PALL) because both were trading at a discount to gold. Palladium is now breaking out and in a major uptrend on concerns about supply from South Africa and Russia, while industrial and investment demands are increasing.

PALL ETFS Physical Palladium Shares NYSE + BATS

There are very few platinum group metal major assets. Investors should check out the juniors with advanced platinum group metals resources in North America.

Subscribe to my free newsletter to get up to the minute updates on rare earths, uranium, gold and silver.

By Jeb Handwerger

Disclosure: Author owns no stocks mentioned.

http://goldstocktrades.com

© 2014 Copyright Jeb Handwerger - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 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