Balanced Portfolio Switch: Take Profit NST & Silver to Precious Metals Basket

Date: 22/10/2024

*** GENERAL AVICE ONLY***

While we are still bullish both Gold and Silver, we are looking to take profit and diversify our exposure into other fringe precious metals, Platinum & Palladium which are lagging 

Palladium and platinum present compelling investment opportunities as part of a diversified precious metals portfolio. Both metals are facing supply deficits, with platinum expected to experience its largest shortfall in a decade. This supply-demand imbalance is likely to drive prices higher in the coming years.

Platinum’s fundamentals are particularly attractive, with deficits forecast to continue until at least 2028

The metal’s diverse end-markets, including automotive catalysts, industrial applications, and jewelry, provide stability. Additionally, platinum’s critical role in the hydrogen economy positions it well for long-term growth

Palladium, while currently oversold, has potential for short-term rallies due to extensive short positions in the market

Its essential role in gasoline vehicle catalytic converters ensures steady demand, despite the growth of electric vehicles.

Both metals are benefiting from a resurgence in internal combustion engine and hybrid vehicle sales, as EV adoption faces challenges

The anticipated decline in U.S. interest rates could further boost precious metals, including platinum and palladium

Investing in these metals offers exposure to industrial demand growth and potential price appreciation, while serving as a hedge against economic uncertainty. Their rarity and critical applications in emerging technologies make them valuable components of a well-rounded precious metals investment strategy

Trade Plan:

Sell 4% allocation of Northern Star (NST) for 25% profit 

Trim half (2.5%) of Silver (ETPMAG) for 20% profit 

Buy 5% allocation of Physical Precious Metals Basket (ETPMPM)