One of the more interesting developments in recent weeks is the increased selling pressure in precious metals. Gold and Silver are two metals that we’ve wanted to be aggressively short for some time now. This has worked out well as prices continue to hit multi-year lows. But one thing that stands out from the group is the continued outperformance from Palladium. When we review our commodities charts, this one definitely stands out from the rest.
Here is a 3 year chart of Palladium compared to Gold, Silver and Platinum. The outperformance here clear:
It’s no wonder that with Silver down almost 20% this year, and gold and platinum also down, that somehow Palladium is up 8% for 2014. The pair trades continue to work.
Here is a chart of the Palladium/Silver pair hitting 10-year highs this week. I don’t see any evidence yet that this trend has changed:
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Tags: $PA_F $SI_F $PL_F $GC_F $PALL $PPLT $SLV $GLD