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
How to Trade Binance Vanilla Options for the First Time on Bitcoin Crypto's - 2nd Aug 21
From vaccine inequality to economic apartheid - 2nd Aug 21
Stock Market Intermediate Top Reached - 2nd Aug 21
Gold at a Crossroads of Hawkish Fed and High Inflation - 2nd Aug 21
Bitcoin, Crypto Market Black Swans from Google to Obsolescence - 1st Aug 21
Gold Stocks Autumn Rally - 1st Aug 21
Earn Upto 6% Interest Rate on USD Cash Deposits with Binance Crypto Exchange USDC amd BUSD - 1st Aug 21
Vuze XR VR 3D Camera Takes Near 2 Minutes to Turn On, Buggy Firmware - 1st Aug 21
Sun EXPLODES! Goes SuperNova! Will Any planets Survive? Jupiter? Pluto? - 1st Aug 21
USDT is 9-11 for Central Banks the Bitcoin Black Swan - Tether Un-Stable Coin Ponzi Schemes! - 30th Jul 21
Behavior of Inflation and US Treasury Bond Yields Seems… Contradictory - 30th Jul 21
Gold and Silver Precious Metals Technical Analysis - 30th Jul 21
The Inadvertent Debt/Inflation Trap – Is It Time for the Stock Market To Face The Music? - 30th Jul 21
Fed Stocks Nothingburger, Dollar Lower, Focus on GDP, PCE - 30th Jul 21
Reverse REPO Market Brewing Financial Crisis Black Swan Danger - 29th Jul 21
Next Time You See "4 Times as Many Stock Market Bulls as There Are Bears," Remember This - 29th Jul 21
USDX: More Sideways Trading Ahead? - 29th Jul 21
WEALTH INEQUALITY WASN'T BY HAPPENSTANCE! - 29th Jul 21
Waiting On Silver - 29th Jul 21
Showdown: Paper vs. Physical Markets - 29th Jul 21
New set of Priorities needed for Unstoppable Global Warming - 29th Jul 21
The US Dollar is the Driver of the Gold & Silver Sectors - 28th Jul 21
Fed: Murderer of Markets and the Middle Class - 28th Jul 21
Gold And Silver – Which Will Have An Explosive Price Rally And Which Will Have A Sustained One? - 28th Jul 21
I Guess The Stock Market Does Not Fear Covid - So Should You? - 28th Jul 21
Eight Do’s and Don’ts For Options Traders - 28th Jul 21
Chasing Value in Unloved by Markets Small Cap Biotech Stocks for the Long-run - 27th Jul 21
Inflation Pressures Persist Despite Biden Propaganda - 27th Jul 21
Gold Investors Wavering - 27th Jul 21
Bogdance - How Binance Scams Futures Traders With Fake Bitcoin Prices to Run Limits and Margin Calls - 27th Jul 21
SPX Going for the Major Stock Market Top? - 27th Jul 21
What Is HND and How It Will Help Your Career Growth? - 27th Jul 21
5 Mobile Apps Day Traders Should Know About - 27th Jul 21
Global Stock Market Investing: Here's the Message of Consumer "Overconfidence" - 25th Jul 21
Gold’s Behavior in Various Parallel Inflation Universes - 25th Jul 21
Indian Delta Variant INFECTED! How infectious, Deadly, Do Vaccines Work? Avoid the PCR Test? - 25th Jul 21
Bitcoin Stock to Flow Model to Infinity and Beyond Price Forecasts - 25th Jul 21
Bitcoin Black Swan - GOOGLE! - 24th Jul 21
Stock Market Stalling Signs? Taking a Look Under the Hood of US Equities - 24th Jul 21
Biden’s Dangerous Inflation Denials - 24th Jul 21
How does CFD trading work - 24th Jul 21
Junior Gold Miners: New Yearly Lows! Will We See a Further Drop? - 23rd Jul 21
Best Forex Strategy for Consistent Profits - 23rd Jul 21
Popular Forex Brokers That You Might Want to Check Out - 22nd Jul 21
Bitcoin Black Swan - Will Crypto Currencies Get Banned? - 22nd Jul 21
Bitcoin Price Enters Stage #4 Excess Phase Peak Breakdown – Where To Next? - 22nd Jul 21
Powell Gave Congress Dovish Signs. Will It Help Gold Price? - 22nd Jul 21
What’s Next For Gold Is Always About The US Dollar - 22nd Jul 21
URGENT! ALL Windows 10 Users Must Do this NOW! Windows Image Backup Before it is Too Late! - 22nd Jul 21
Bitcoin Price CRASH, How to SELL BTC at $40k! Real Analysis vs Shill Coin Pumper's and Clueless Newbs - 21st Jul 21
Emotional Stock Traders React To Recent Market Rotation – Are You Ready For What’s Next? - 21st Jul 21
Killing Driveway Weeds FAST with a Pressure Washer - 8 months Later - Did it work?- Block Paving Weeds - 21st Jul 21
Post-Covid Stimulus Payouts & The US Fed Push Global Investors Deeper Into US Value Bubble - 21st Jul 21
What is Social Trading - 21st Jul 21
Would Transparency Help Crypto? - 21st Jul 21
AI Predicts US Tech Stocks Price Valuations Three Years Ahead (ASVF) - 20th Jul 21
Gold Asks: Has Inflation Already Peaked? - 20th Jul 21
FREE PASS to Analysis and Trend forecasts of 50+ Global Markets by Elliott Wave International - 20th Jul 21
Nissan to Create 1000s of jobs with electric vehicle investment in UK - 20th Jul 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

You May Have Overlooked These “Sleeper” Precious Metals

Commodities / Metals & Mining Nov 16, 2020 - 12:35 PM GMT

By: MoneyMetals

Commodities

Precious metals markets got off to a rocky start this week as Wall Street celebrated promising developments on the vaccine front.

On Monday, stocks surged while gold and silver sold off hard. That selling didn’t bring downside follow through, however. The metals held trading range support levels and pared some of their earlier losses heading into this Friday the 13th.

A metal we don’t often talk about traded up to an amazing record high earlier this week. The noble metal rhodium made palladium look dirt cheap by comparison – commanding as much as $15,000 per ounce.


Like platinum and palladium, the primary application for rhodium is catalytic converters for cars and trucks. It is often alloyed with platinum and palladium to enhance resistance to corrosion. Rhodium is also used in some types of jewelry.

The high-flying metal is available to investors through Money Metals Exchange in very limited quantities in the form of one-ounce and 5-ounce bullion bars. They come sealed and authenticated by either of the reputable mints Baird & Company or PAMP Suisse.


That said, we don’t necessarily recommend buying rhodium at these levels. It’s certainly not suitable for all investors. Those that own rhodium and want to take profits.

We would suggest that those looking to diversify their metals portfolio beyond core gold and silver holdings consider platinum bullion coins or bars instead. The market for platinum is more liquid and the price per ounce is much more affordable.

Platinum is more than twenty times rarer than gold. It is so rare that all of the platinum ever mined could fit into a room measuring 25 feet by 25 feet.

The case against platinum is that its demand profile is very narrow, dominated by the automotive industry, and is generally not held in monetary reserves like gold.

In large part due to a big diesel-emissions scandal a few years ago, platinum has been out of favor for use in auto catalysts as manufacturers have turned more to its sister metal palladium. But with palladium now costing more than double what platinum does, incentives for substitution are strong.

There are also incentives for investors to substitute or supplement with platinum as part of their hard asset mix. Inflows into the top platinum exchange-traded fund have surged this year along with the broader wave of gold and silver buying.

It won’t take much of an increase in demand for platinum to overwhelm mining supply. The platinum producing industry, such as it is, will struggle to arrest declining output levels.

As a hard asset, platinum should benefit from the inflationary environment the world now faces. Meanwhile, if there’s an economic recovery, platinum prices would receive a new tailwind from rising industrial activity.

On a historic basis, platinum is extremely undervalued versus gold, palladium, and most definitely rhodium.

A few years ago, though, an investor could have purchased rhodium at a fraction of today’s price. As recently as early 2017, rhodium sold for less than $1,000 per ounce.

Rhodium’s explosive move since could potentially play out on a similar scale in other metals in the years ahead. Perhaps platinum, perhaps silver, could enjoy a massive multi-fold run up on supply scarcity and surging demand.


The CEO of First Majestic, one of the world’s leading silver producers and a past guest here on our podcast, expects to see much much higher silver prices.  First Majestic founder Keith Neumeyer said in a recent interview that silver will become increasingly essential to alternative energy components of the “green economy” that politicians around the world are racing to transition us into.

Keith Neumeyer: I still believe today that silver is going to go to triple digits, and I get laughed at all the time, but I'm not going to get knocked off my game just because some people think I'm talking my own book. I actually believe for real fundamental reasons.

If we're going to go green and we're going to do everything we need to do as a human race to evolve this species to where we want to go, we need a lot more silver, and copper as well, but obviously, I run a silver company. So, I'm going to keep pushing as hard as I can growing this business, stay very much focused on silver. In one of these days, I will be vindicated when I see triple digits.

Triple digit silver may not be that far off.  Considering how rapidly five-digit rhodium came to fruition, silver could see a $100 handle on a relatively modest bull market advance.

Well, as the presidential election continues to be contested and all eyes focus on Georgia to determine the balance of power in the U.S. Senate, the Republican-controlled Senate quietly moved this week to change the makeup of the Federal Reserve Board.

Senate Majority Leader Mitch McConnell finally cleared the way for a vote on President Donald Trump’s nominee Judy Shelton. 

Her nomination is bitterly opposed by Democrats who have derided her past support of a gold standard. Some Republicans have wavered on supporting her because of her unconventional views on monetary policy. But it appears that she now has the votes to be confirmed sometime next week.

We doubt Shelton will move the central bank toward sound money principles. But she could serve as a powerful voice of dissent on monetary policy decisions.

The Fed operates based on the myth that its monetary activism is supported by all the leading experts.

It’s true that the economists who work for banks, for Wall Street, and for the government tend to endorse the Fed’s inflationist philosophy. But there are entire schools of economics dedicated to opposing it.

There is also thousands of years of history demonstrating that inflationary fiat monetary systems ultimately fail.

Currency based on hard money – gold and silver – may be inconvenient for the agendas of powerful financial and political interests. But precious metals will always represent real value which can never be replicated by paper notes or computer digits.

By Mike Gleason

MoneyMetals.com

Mike Gleason is President of Money Metals Exchange, the national precious metals company named 2015 "Dealer of the Year" in the United States by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC, and his writings have appeared in hundreds of publications such as the Wall Street Journal, Detroit News, Washington Times, and National Review.

© 2020 Mike Gleason - 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