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Precious Metals September 30, 2011

Posted by federalist in Markets.

What is the lingering obsession with gold? I was amused by an ad campaign launched this month by Palladium Alliance International: “I’m so over heavy metal” points out that palladium is intrinsically more desirable for white metal jewelry than silver, platinum, or alloyed gold.

Whether you’re buying metal for investment or for jewelry the relative merits of palladium are compelling:

  • Unlike gold, palladium has significant industrial uses (similar to platinum) that provide price support near its current trading levels.
  • Palladium is as rare as gold and platinum, but currently sells at less than half the price.
  • Palladium is stronger than silver and gold.
  • Palladium is light — half as dense as gold and platinum, almost as light as silver.
  • Palladium doesn’t tarnish like silver.

Score: Bubbles & manias – 1; Efficient Markets – 0.



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