The price of palladium rose by 4.5% today, upping its monthly gains to a little more than 20%. Unlike gold, which is mostly a useless commodity owned by the end of world types, palladium actually has an industrial use, found mostly in the auto sector. When auto sales struggle, so does the price of palladium.
Up until recently, the price of palladium was knee-jerked around, based solely on US auto sales. Now that the Chinese are ditching their bicycles in favor of Buicks, everyone is paying close attention to their auto market as a catalyst for palladium.
Two days ago, Chinese auto sales came in super hot, up 23%, 1.6m units in July, and recorded inventory levels at 11mo lows. This, alongside the fervent run in gold and silver, has speculators diving in headlong, without swimming trunk or protective eyewear.
The best way to play this trend is via PALL or SWC, which is a miner that has some palladium exposure.
The bicycle class in China is reminiscent of the Samurai in Japan, who ardently held onto their idiot swords as the Gatling guns mowed them down like sweet grass. Eventually, they will be a relic of the past and General Motors will rule the middle earth with factories the size of small eastern european countries.
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Is that a dog whistle to short TSLA ?