Extremely Rare, Extremely Precious

Of the four major precious metals (palladium, platinum, gold, and silver), palladium is said to be the most expensive and rare. In fact, it is about fifteen times rarer than platinum, which probably surprises most people. In addition, in this brave new green world, palladium is an essential part in making pollution-control devices for automobiles.

Thus, I was a bit taken aback by the poor performance of PALL, the physical palladium ETF. However, about two weeks ago something changed, and palladium woke up in a major way, well under the radar of most even in the gold/silver arena.

On the PALL monthly chart, below, we have a bullish engulfing candle forming for the month of December.

Granted, even with Christmas this coming Monday the candle still has some time before it is official. But after a prior, steep downtrend, this sort of strength now puts us on watch for a major upside reversal into 2024. 

Once again, we have not only The Fed but also the Bank of Japan gambling that inflation has been conquered and will not come back anytime soon with vigor.

And, once again, I dissent. 

If I am correct, the precious metals, palladium included, should push back on Central Bankers gone wild in the developed economies and humble the many folks who seem hellbent on mocking gold bugs relentlessly.