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Platinum and Palladium - A Nice Addition to Your Precious Metals Portfolio

By: Przemyslaw Radomski | Tuesday, November 20, 2012

Yesterday was a good day for the whole precious metals sector - all important assets rallied sizably with the USD Index declining 0.38 (0.47%). It seems that the brief consolidation that we saw in the last couple of days is either over or almost over and the whole sector is poised to move higher.

In our last essay we wrote a lot about the importance of diversification and we believe it is a good idea to continue this thread a bit more in today's essay as well. And this is why we would like to draw your attention to two precious metals that seem to be in gold and silver's shadow, as we think they provide good investment opportunities. So, in order not to put all our eggs in one basket, let us move on to the technical part of today's essay and have a look at platinum and palladium that didn't lag behind the more renowned precious metals yesterday - we'll start with platinum's short-term chart (charts courtesy of http://stockcharts.com.)

$PLAT Platinum - Spot Price (EOD) CME

In the chart, we see that prices have broken above the declining resistance line. We saw three consecutive closings followed by a move back to this line, which was immediately followed by a pullback. And yesterday's price action is reassuring with platinum closing at almost $1584. At this time, the breakout has been confirmed and higher prices should now be expected.

Let us now move on to the second hero of today's essay - palladium.

PALL ETFS Physical Palladium Shares NYSE

In this chart the situation looks promising as well. Prices not only moved back above the declining long-term resistance line but also moved above the short-term declining resistance line. Therefore, the short-term implications are also bullish here which was further confirmed yesterday, as the ETF closed at over $63.

Summing up, both platinum and palladium can be seen as a decent addition to a precious metals investor's portfolio, as their upside potential is tempting and they are good for diversification purposes. Moreover, these metals suggest higher prices across the precious metals sector. In case you were wondering how you can invest in platinum, palladium, gold, silver and mining stocks via ETFs, we invite you to check out our just-released Precious Metals ETF & ETN Ranking that includes over 100 funds. We scored individual investment vehicles according to their usefulness for long-term investors and short-term traders & we included practically all characteristics that matter when it comes to finding an ETF or ETN that fits you best. It's reserved to our premium subscribers, but if you sign up for a risk-free 7-day trial you'll be able to enjoy it right away. All we will ask is your first name and e-mail. Sign up now.

Thank you for reading. Have a great and profitable week!

 

Author: Przemyslaw Radomski

Przemyslaw Radomski, CFA
Founder, Editor-in-chief
Gold & Silver Investment & Trading Website - SunshineProfits.com

Przemyslaw Radomski

Przemyslaw Radomski, CFA (PR) is a precious metals investor and analyst who takes advantage of the emotionality on the markets, and invites you to do the same.

His company, Sunshine Profits, publishes analytical software that anyone can use in order to get an accurate and unbiased view on the current situation.

Recognizing that predicting market behavior with 100% accuracy is a problem that may never be solved, PR has changed the world of trading and investing by enabling individuals to get easy access to the level of analysis that was once available only to institutions.

High quality and profitability of analytical tools available at www.SunshineProfits.com are results of time, thorough research and testing on PR's own capital.

PR believes that the greatest potential is currently in the precious metals sector. For that reason it is his main point of interest to help you make the most of that potential.

As a CFA charterholder, Przemyslaw Radomski shares the highest standards for professional excellence and ethics for the ultimate benefit of society.

Sunshine Profits enables anyone to forecast market changes with a level of accuracy that was once only available to closed-door institutions. It provides free trial access to its best investment tools (including lists of best gold stocks and best silver stocks), proprietary gold & silver indicators, buy & sell signals, weekly newsletter, and more. Seeing is believing.

Disclaimer: All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

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