Palladium now?

by | Nov 13, 2003 | Archives

When I think back about how well gold and silver did at the beginning of the last 15 year downward Wall Street trend (1968 to 1982) I never forget that platinum and palladium also skyrocketed. Now as I watch so many similar economic scenarios unfold, the 1998 stock market crash, the stumbling economy, the collapsing U.S. dollar, the huge fderal spening deficits and debt, my mind turns to the precious metals and why what Michael Checken sent me is worth sharing with you.

“Dear Gary, The way I look at it, palladium prices should double over the next 3-5 years as the bull market in gold, silver and other base metals really takes off. And the way to play that trend is through Canada's largest palladium company, North American Palladium (Toronto-symbol PDL).

North American Palladium is Canada's only primary producer of palladium, through its mega Lac des Iles mine. There is a huge source of mineral wealth in Lac des Iles, including mostly palladium, platinum, gold, copper and nickel. When you buy PDL, you're buying mostly a palladium producer, but with a little kick in other metals, too.

PDL is making money. Second quarter earnings per share were C$0.37 versus C$0.27 cents per share a year earlier. And that's at a time when palladium has crashed! Why? Because PDL has correctly sold some of its palladium production forward at over $300 an ounce versus $200 today.

As palladium eventually turns around, forward selling will draw to a conclusion. Most companies operate this way, including Canada's largest gold company, Barrick Gold. As gold started to turn around last year, Barrick lifted its forward sales.

North American Palladium has a good stock chart. The stock is up 10% in 2003 in Canadian dollars, or 24% when converted back into U.S. dollars as the Loonie rallies. PDL should be a $15-$20 stock over the next 24-36 months as palladium and other base metals in its inventory accelerate their bull market momentum. This is a great small company with superb upside, offering a basket of base metals and some gold. BUY PDL up to C$7.”

You can get more information from Michael about this share and his email letter at

Tomorrow’s message continues look at ways to survive and prosper from the U.S. dollar crash. Until next message may all your investing be good.