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Politics : Welcome to Slider's Dugout
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To: SliderOnTheBlack who wrote (1497)5/5/2006 10:45:13 AM
From: ItsAllCyclical  Read Replies (2) of 50084
 
Gold vs Palladium comparison

Your comparision overlooks a few important details. The average US investor has what 2 choices for Palladium stocks? Or they can use the futures market in which case they need to be both right about time and price. Either way it's an incredibly tiny market w/few choices which should get brought into the risk/reward criteria.

Gold which is still very small relative to the gen. market at least offers at a min 50+ decent alternatives for stocks for the average US investor. Of course not all of the stocks are at the same point in the cycle as the rest which of course is the big bonus. Rather than using margin or options both of which are risky it's far easier to rotate from play to play specifically from big cap to mid cap and then small cap on various sector moves. The average gold stock has more than outperformed the underlying metal over the last year as well. Sure Palladium stocks have too, but gold has given you the opportunity to do this repeatedly by switching to laggards. As such I would agrue the leverage (potential gains) in gold has been far greater for an a decent investor in both sectors.

Of course gold offers a convienient ETF for tracking the physical as well vs playing the futures. I'd say for 99%+ of the investors out there this is a far better option.

I'm not making a prediction on future performance here between the two metals. My point is simply the comparison (investment merits) between the two is far more complex than a simple % gain. Of course you already knew that, but that's not how you portray it. Can we put this tiring gold/palladium comparision to rest now?
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