Is the present value of palladium relatively cheap?
*Barron's, by Jim Hawei, January 29, 2007:
“A recent JPMorgan report forecast further increases in palladium
demand from the car sector for at least the next four years. More
important, increased purchases of palladium by car, expecting the price
ultimately to top $500 makers is helping to lift overall demand to a
level roughly in line with supply, lowering the curtain on several
years of oversupply.
JPMorgan says that palladium 'appears too cheap relative to platinum,'
estimating that the normal price ratio of platinum to palladium is 2 to
1.
'The difference in price between platinum and palladium is not because
platinum is overvalued, but it's because palladium is extremely cheap
at these levels,' Balarie says. 'I actually expect both metals to head
substantially higher as we continue forward in this metals bull market,
but I also expect the spread to narrow.'"
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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