Jim Rogers: Chinese cars will drive bull market for platinum and palladium
Gold (GLD, quote), silver (SLV, quote) and platinum (PLTM, quote) have been losing their luster with speculators, but legendary investor Jim Rogers sees a bull market for platinum and palladium. His reasoning? Palladium and platinum are important for anti-pollution devices in cars, which are a rising market in China.
In a recent interview, Rogers said China will soon be the world’s largest producer and consumer of automobiles. “China has virtually no cars,” he added, “and only started producing and buying cars 15 years or so ago.”
While Rogers is unsure how many cars will be sold in the next five years, he sees a strong market ahead. “It’s not going to collapse, that’s for sure,” he said.
PLTM is up for 5.21% in 2012 and has increased 1.51% over the last week. At $19 per share, the ETF is still cheap, trading close to its 52-week low of $17.09. With many industrial uses and relatively few speculators, PLTM is likely to be a better buy than GLD.
Source: Emerging Money