Mining for Money: Palladium Puts the Pedal to the Metal

Most eyes are on gold, oil and other more headline-grabbing commodities. Meanwhile, palladium quietly puts the pedal to the metal in its bull market.

Check out this chart of the ETFs Physical Palladium Shares (NYSE: PALL).

You can see that PALL was already trending higher. It recently broke out. Then it came down and retested that breakout before taking off again.

This breakout gives us a target of 104. That’s 33% higher than recent prices.

Palladium is mainly used in catalytic converters in automobiles. This next chart, from Macquarie, shows global car sales accelerated in 2016.

And the leader in global car sales was China. "China gained 13% and saw an additional 3.2 million vehicles sold," Macquarie said in a report.

In the most recent month, we saw car sales dip in the United States. The rest of the world doesn’t care.

In fact, Scotiabank reports that car sales in the developing world are accelerating. Rising at their fastest pace since 2013.

And that’s why palladium is breaking out. PALL is fine way to play this trend. Individual miners carry more upside potential, and also risk.

Palladium’s path higher is part of a broader bull market in all sorts of metals. These things are cyclical. And the road signs are all pointing "Up."

P.S. I’m putting the finishing touch on a virtual goldmine of my favorite microcap stocks in the metals and mining space. And I’m planning to unveil these to our very best subscribers in the coming weeks.

Sean travels far and wide to seek out small-cap values in the natural resource sector. His journey started in New England. As a youth he worked on Mt. Washington, on the cog railroad that runs to the summit. Working on…