Rohan C. Pease's  Instablog

Companhia Vale do Rio Doce or VALE SA, the second largest mining company in the world is taking large steps to grow organically thru vertical integration versus thru widely speculated acquisitions. VALE is the world’s largest iron ore producer, but thru strategic asset purchases is becoming a sophisticated miner with supreme logistical reach.

Back on June 10 I wrote an article recommending investors buy palladium and sell short platinum because platinum had become too expensive for industrial use. Shorting platinum was a hedge against palladium falling in value, palladium should outperform platinum in the short run; and therefore investors could take advantage of the low risk spread between the two.

So far as of the close on July 16, Palladium has fallen 3.1% and platinum has slipped 8.7%, which if you followed my recommendation would have yielded 5.6% return since June 10. (Note - both decreased in value, highlighting the importance of being properly hedged)

Now with the return of the auto industry to stabilization, GM bankruptcy finalized, and supply restrictions in South Africa coming back to the forefront; I think it's time investors get back in to platinum. Of Corse I don't recommend going long platinum itself without a hedge.