Last week, I told you about a supply shortage in one of the world's most important metals...
For the past several years, demand for this metal has been so high and supplies so thin, the market has had no choice but to tap a strategic Russian stock pile to cover the deficit.
But Russia's reserves are almost gone... and if Russia hangs a "sold-out" sign on the door, then get ready for the price of this metal -- palladium (a member of the platinum metals group or (PGMs)) -- to skyrocket.
Resource shortages like this are exactly the opportunities I look for in my premium newsletter, Scarcity and Real Wealth. With the demand for palladium soaring, and the global supply getting smaller every day, I think palladium is presenting investors with a good buying opportunity.
But investing in palladium can be tricky... it's not as well known as other metals like gold and silver, and it's not nearly as frequently traded.
So how do you invest in it then?
The easiest way is to invest in the metal is through an exchange-traded fund (ETF) like ETFS Physical Palladium Shares (NYSE: PALL). The fund is designed to reflect the performance of the price of physical palladium.
But I prefer to take a different route. I like to invest in the palladium miners -- the guys that actually pull the stuff out of the ground.
Right now, one of my favorite palladium miners is Stillwater Mining (NYSE: SWC). Recently, General Motors (NYSE: GM) signed an offtake agreement with Stillwater to buy future volumes of palladium without fixed floor or ceiling prices. This contract is akin to a blank check...
For one, the company is the only palladium miner in the United States. In fact, it's among only a small handful of companies digging up palladium in the Western hemisphere.
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 11th, 2014 | John Ransom
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 9th, 2014 | John Ransom