Instead of weathering the ride with palladium, the Mercenary Geologist suggests investors look to platinum or silver.
After reaching record highs earlier in the month, the palladium price has been on tumultuous ride hitting US$1,804 an ounce on Monday (November 4), before dropping US$47 or 2.61 percent in less than 24 hours.
The rapid descent likely caught some off guard; however, Mercenary Geologist Mickey Fulp predicted the fall when the Investing News Network (INN) spoke with him over the weekend at the 45th annual New Orleans Investment conference.
“I don’t know anybody that expected that exponential rise; it hasn’t gone parabolic yet, but it will,” he told INN.
Instead of investors debating whether now is the time to get into the palladium market, Fulp suggested platinum as a better place to invest.
“I didn’t think (palladium) was going to US$1,800; I didn’t think it was going to go to US$1,200. It’s just gone out the roof,” he said. “When metals go exponential, or any financial market of any kind when prices go exponential, they will go parabolic and come right back down the other side, so I wouldn’t be buying palladium right now, I would be buying platinum.”
“The gold silver ratio is completely skewed to gold right now. It’s 84 as of Friday (November 1). Historically, since January of 1970, the mean has been about 57 and the median has been about 59, so we are way on the upside, and at some point those ratios will normalize, which is bullish for silver,” explained Fulp.
“So, if you are going to buy bullion right now it would make sense to buy either platinum or silver, especially silver, and when it normalizes you sell all your silver and convert it into real money, which is gold.”
Much of the growth in the gold price has been attributed to its safe haven nature amid times of political or economic uncertainty — a recurring topic at the four-day conference. While some of the experts voiced concerns over America’s economic future, the Mercenary Geologist remains bullish on gold and the US dollar.
“I think it looks bullish for gold. We’ve stabilized at US$1,500. I think if you took the 50 day moving average, it’s probably right at US$1,500. It’s been a little lower, a little higher. I think the lowest it got was US$1,462; I think the highest was US$1,562. But it’s been bouncing in there, so it’s built a base, very strong base at US$1,500. Where it’s going to, who knows.”
He continued, “But lower interest rates are good for the (US) dollar, economic uncertainty is good for the dollar. It’s still a safe haven, (so) geopolitical risk all over the world is good for the dollar, so all in all I’m bullish on the dollar going forward.”
Listen to the interview above for more from Fulp on the gold price and whether he thinks we should adopt the gold standard again. You can also click here for our full New Orleans Investment Conference playlist on YouTube.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.