Mark Anthony

Recent World Events Are Bullish for Metals

JakeAllen:

No I do not own NILSY and do not plan to start any time soon. NILSY is mainly a nickel player, not a palladium player, even though they are the world's largest palladium supplier. Palladium is just a minor by-product for them. NILSY is in a very bad share now, which is actually bullish for palladium.

The correct stocks to buy for a palladium play are SWC and PAL. Don't buy NILSY. Read this recent news and you can conclude that it's imminent that they run out of cash and have to shut the mine down soon due to low nickel price:

sg.news.yahoo.com/rtrs...

Recent World Events Are Bullish for Metals

Also read today's mineweb piece to understand the paradigm shift of the depletion of Russian palladium stockpile:

The Russian palladium stockpile - do we need to worry?
www.mineweb.net/minewe...

Recent World Events Are Bullish for Metals

Yes adding SWC today is a good idea. I would recommend 50% on SWC and 50% on PAL, or even 60% on SWC and 40% on PAL.

Don't be discouraged by SWC's inaction today. There seems to be a big over-sized short trapped in SWC, unable to unwind its over-sized short position, and has been shorting more to hammer SWC down hard to trigger a sell off. They will fail.

Look at history of SWC shorts:
www.nasdaq.com/aspxcon...

Comparatively, PAL shorts were able to cover nicely at the end of May:
www.nasdaq.com/aspxcon...

So buy SWC without hesitation. There will be a short squeeze soon.

Recent World Events Are Bullish for Metals

Jake2:

There might be something I do not quite understand in the coal market. But I looked at the BP survey cited in the article, and do not see a whole lot of supply/demand imbalance. There are some discruptions but I see them as temporary in nature, not quite long term effects. I am not saying coal should turn south here, I am saying such price rally can not last long. In comparison PGM bull can be way much stronger and much longer lasting.

Recent World Events Are Bullish for Metals

There is currently no PGM metal ETFs in the US market, but there are some recent ETNs. See this SeekingAlpha entry:
seekingalpha.com/artic...

In Switzerland there are ZPAL and ZPLA. (Look them up in Bloomberg using zpal:sw and zpla:sw)

Best leverage of course is the two PGM stocks I mentioned, PAL and SWC. Or by physical metal from dealers like APMEX or PalladiumDealer.com. APMEX is good business. I do not have dealings with PalladiumDealer so can not make recommendation.