Email of the day
Comment of the Day

October 01 2010

Commentary by Eoin Treacy

Email of the day

on palladium:
"Many thanks for the item on palladium yesterday. I have been a keen investor in this metal, and also platinum, silver and gold, with very good results. Do you or any readers know of a leveraged ETF for palladium accessible to an investor who is based in the UK? I use leveraged ETFs for gold, silver and platinum (alongside core holdings of the physical metals) but I am not aware of a leveraged ETF for palladium. This represents a significant gap, because, as you highlighted in your comments yesterday, palladium has excellent fundamentals and is, in my opinion, the premier investment amongst the metals.

"Thanks for your truly excellent service. I just renewed my subscription. What incredible value you and David give us!"

Eoin Treacy's view Thank you for your kind words and continued support. Palladium is a relatively thin market so I'm not sure it could support a leveraged ETF, however if any subscribers know of such a vehicle I would be happy to add it to the Chart Library. Both David and I achieve leverage by trading palladium through spread-betting, profits from which are tax free in Britain and Ireland.

An alternative which could offer leverage to the price of palladium is Stillwater Mining which was mentioned in the article from Mineweb I posted yesterday. It is currently rallying towards the upper side of the 8-year base near $18.50 and has sustained a progression of higher reaction lows since July. A sustained move below $15 would be required to question scope for some continued upside.


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