As most most you you know VW has been in the news a lot lately. For anyone that does't know what happened, basically they programmed their car's ECU's to kind of run on 2 different modes one for emission testing and one for everyday driving.
So what doe's this mean for us? well first of all their share price is getting crushed, and for anyone that doesn't know the CEO of Porsche has stepped in as CEO for VW.
Instead of crapping on some more you guys should watch this video and read this article. As VW has presented some good money making opportunities. Please note that I'm not posting this as a get rich quick scheme.
Palladium price reacted much stronger on the figures yesterday than Gold, Silver, Platinum and Copper.
I see two reasons: Many employed people in the US means a lot of cars sold in the US. (The majority of cars sold in the US have an Otto engine.) And in future also Europeans will think twice before buying a Diesel engine for their car. (Platinum is mainly used for Diesel engines, Palladium for Otto engines.)
I bought the PAZ contract yesterday, and intend to hold it medium to longterm. Stop loss below yesterdays low.
I mean something else. (Since the scandal of VW the price of Palladium not only moved up to 725 $, but came back down since 9th of October to end up under 600 $ yesterday just after the numbers.)
What I mean is that usually all precious metals move in the same direction. It was obvious that yesterday after the US numbers prices for all metals moved down quickly. Prices for most of the metals stayed down into the close. Only the price for Palladium moved back up. This divergence is a sign that Palladium is stronger than the other metals. In my opinion, all metals will move upwards within the coming months. Perhaps after a further move down. Palladium should be the strongest among them, and might avoid a severe move down.