Wednesday, February 18, 2009

Fail-Proof Plan to Create Wealth with Palladium (Pt, and Ag)

Who am I to make up a fool-proof plan? Well, I haven't gotten rich off of buying and selling precious metals. However, I have made money! Remember last year when we had $1000 Au, $2000 Pt, $20 Ag, and $600 palladium bar? Well, I sold off some gold and platinum and used the money for,, travel, etc. I guess I'm not a real investor if I spend the money now am I!

But, I did use some of the money to buy Ag and palladium. I wanted to buy palladium coins when it was around $200/oz and the Ag was around $10, and I got pretty close. Granted, I paid a large coin palladium premium (and a small silver premium too).

Fool-Proof Plan for Investing Palladium and Other PGMs

Here's my fool-proof plan. No, I don't guarantee it, but I am following this get-rich plan myself. I read a lot about the precious metals market. There's a lot about Au and even some about silver. There's very little about platinum and only will you find rhodium or palladium information on small Internet sites like this one. Thus, I created this (mainly) palladium investing site.

Also, let me note, this is my plan. I haven't read this anywhere, it's just something I've noticed. This will work if just one factor holds:
Palladium, platinum, and Ag follow gold.
You see, Au makes its move first, maybe 10% or so from $800 to around $900. That's a big jump. Then silver will follow and jump from $9-12, for a 25% jump. Platinum moves slowly and is pretty volatile, but for now all it has done is stays ahead of gold because that's where platinum investors think it should be. Palladium sits tight where it was.

Our Current Situation

The move I just mentioned in the previous paragraph was happening at the end of 2008. Now, in 2009, we've seen this: Au jump from $900 to $970, for nearly a 10% jump. Ag followed suit and went from $12-14, for a nearly 20% increase. Platinum? Just as suggested, it's just moving as much to stay ahead of Au (gold surpass platinum only for a day or two last year). And Palladium? Well, it moved over all a good 15-20% from $180-$200, but no one has really noticed it yet.

The Future and My Prediction

Price of gold will peak around $1050 or so for another 10% increase. Platinum and silver increase, on the other hand, might see up to a 75% jump! So, if silver doubles even, it wouldn't be too crazy, because it would be at $28. I think it will stop around $20 though, and I think platinum will stop around $1800 max. And finally, what about palladium? Invest now is what I say. Palladium has barely moved, and has proven to be quite volatile. I think palladium rise another 100% to at least $450, probably more. This'll happen after silver and platinum have moved.

The Palladium Plan

Do you kind of get the picture to get rich with rare palladium? If not, keep reading, I'll explain in a second.

First of all, if you don't have a good $100,000 in it it's not going to work as quickly as you'd like. You could start with $1000 and still make money, but would take years. So, let's pretend that we all have $100,000. (I don't have this much myself, but when I get it I plan to follow this plan).

So, I'm sure you've seen by now that you simply wait for Au to rise, then you buy silver or platinum. But, at that point the silver and platinum price has already risen a certain percent, say 20% by the time you get your hands on some. So, what to do? The title of this blog: you buy palladium! (if you can't find palladium, read this: I Can't Find Palladium! Where to Buy Palladium Coins?).

If you read the post that I linked too you'll know that many places require to spend at least $1000 palladium or else buy 10 oz palladium or so. That's good, right? If you buy $1000 worth of $200 palladium then you'll have 5 oz. If that goes up to $600/oz then you can sell it, and you'll have made $3000 on your $1000 investment, for a profit of $2000.

Say you bought $100,000 of palladium. It doubles or triples, then you sell it when it's worth $250,000, just to be safe. How long can you live on $150,000? Well, for now, I won't be traveling as much as I plan to in a year or two, so that money would last me a couple years. Life without a job traveling the world just for buying 500 palladium coins! And by the way, you'd still have you initial $100,000!

Now folks, how you get that initial $100,000 is up to you. And if you blow the money, that's up to you too. I wouldn't spend it all on travel as I mentioned, although it would be tempting.

After You Make Money Investing Palladium Bars

So, you had your fun. You have $250,000 in your bank account and you're smart enough to have kept your job, or else you quit for a while, spent $10,000 over the next 3 months, then got a part-time job making $15,000 a year. That's fine, as long as you're not dipping too much into your $250,000. The key is to reinvest what you made. But, you can't buy palladium or any other metal that got you here, it's too expensive! So, what can you buy? There are several safe investments:
  • Stock market - if PGMs are this high, stocks will be down. Buy some that you know will go up. I would buy shares of the S&P 500 as that would likely be half of what it was before the precious metals take-off.
  • Lend your money - you can lend it to an individual secured by their home. You can lend it to the government as a bond. Lend it to the bank in a CD. The lower the percentage, the safer. Shoot for 10% at least, though.
  • Buy a business, or start one, or go in with someone.
  • Have fun selling single palladium coins on Ebay, now worth $600, for $800 each. They'll sell if they aren't right at the top yet!
  • Buy a house. Fix it up with some of your money and sell it
And those are just suggestions. The goal is to increase that $250k, because you're not done yet. You can't live in $250k the rest of your life. So, you need to increase that. And, if Au and it's followers--silver, platinum, then palladium--drop again, buy some and do it again! Oh, and if you find some rhodium let me know. I'd like to buy some with you. Rhodium is $1000/oz, and last year was $10,000!


  1. It was Robert Kiyosaki in the Rich Dad Poor Dad series of books who showed the fallacy of the old way of thinking.

    "Go to school, work hard, pass your exams and go to university. Study hard, get a good degree, and then a job with promotion prospects. Work hard and you will succeed."

  2. The old way has not worked to date for us.
    Too many out side influences, bubbles, manias.
    Year of birth has more to do with easy wealth.
    Just doing the research on Palladium.
    I'm interested @ $200.00 / oz

  3. The "PMGs" (Palladium included) seem to be pushed by the auto sector for one application.
    Be aware of new technologies that may render PMGs valueless in this market.
    But buying at bottom my be worth some investment.
    Better odds than playing the lotto I suspect.

  4. buy the 100-oz. russian bars at
    only $12 an oz. over spot!
    beautiful 108.12 monster bars!
    i would rather have 500-oz. of
    palladium than a 100-oz. bar of gold!


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