Trunorth's  Instablog

 

Trade idea: 
i) Buy palladium , sell platinum 
ii) Buy a basket of palladium and platinum, sell south african rand 

Duration: 
Medium to long term (3 months onwards) 

Background

Gold has been in the spotlight lately for its recent surge and the break above $1000/ troy ounce (driven by a weakening dollar and increased investor interest in the shiny currency). Its first cousin silver (a.k.a. poor man’s gold) has been equally interesting lately surging to it’s almost 13 month high lately (of circa USD 17.5 per troy ounce). So its natural that some of the spotlight rubs off to its second cousins – platinum and palladium, but what’s interesting is that not too many people are aware of the fundamentals of these metals usually labeled PGM (platinum group metals), especially palladium. Today's WSJ writeup being one of the recent spotlights on these metals.