GMiki1

Why I Would Sell Platinum and Buy Palladium

I have heard they need to retool to change to palladium.

I think we're past peak on oil, so I wouldn't look to any reduction in price. Oil production is down in most of the countries we import from, as is U.S. production year over year.

Why I Would Sell Platinum and Buy Palladium

I agree in re palladium to some extent, but only because North American Palladium has closed its main palladium mine, waiting for $800 palladium, which they feel is not far off. But because of a deep prior price spread between platinum and palladium, many car makers switched to palladium at that time previously, only to be caught by a rise in the palladium price. Once bitten, twice shy. We didn't see the switch when platinum rose last year--I think for that reason. It may be, also, that silver is the new palladium for catalytic converters.

But the idea that car manufacturing has been down is wrong. Do you simply mean U.S. auto manufacturing? There is a large world out there and the Chinese automakers have been producing steadily--also now in India, Tata Motors. This tells us something about the oil market, too.