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<p>[QUOTE=&quot;NorthKorea, post: 1981360, member: 29643&quot;]Normally, I wouldn&#039;t be a palladium buyer. Mainly, this is due to my not being an auto manufacturer. However, with the recent run up in price, palladium has pushed itself to the front of the conversation for those looking to invest in precious metals.</p><p><br /></p><p>So, here is why I wouldn&#039;t buy palladium right now, and I&#039;d give great consideration to selling Mar 15 or later delivery date contracts.</p><p><br /></p><p>1) Political turmoil is the primary driver in price. Although manufacturers have also been consuming palladium for cars, the reality is that the price is being driven almost entirely by Russian producers not producing, or, at the least, lowering output.</p><p><br /></p><p>2) Platinum ratio. Palladium is considered a cheaper, somewhat less efficient / more toxic, substitute for its PMG sibling platinum. With the platinum ratio now under two, platinum has a screaming buy signal, relative to palladium.</p><p><br /></p><p>3) Producer response. With palladium prices through the roof, producers should be considering selling into the demand and opening new ventures. The lack of activity and investment in this area implies an expectation of lower prices in the medium and long term.</p><p><br /></p><p>Those three reasons are the primary drivers behind my decision to avoid any sort of palladium investment. We could see a quick collapse (30%+ in the metal by the end of next Spring.[/QUOTE]</p><p><br /></p>

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