This Precious Metal Is Set Up for a Double-Digit Rally

Among precious metals, gold is the star of the show...

It always gets headlines, no matter what else is happening in the space. And with the run-up we've seen lately, it's soaking up extra attention.

Gold recently soared above $4,000 an ounce for the first time in history. The metal is up more than 20% in just a couple of months.

But that isn't nearly as impressive as what's happening in palladium...

This lesser-followed precious metal has gained as much as 53% since late August. It recently broke out to a new 52-week high in the process.

According to history, this trend can continue... And another double-digit gain is possible in palladium over the next 12 months.

Expect Palladium Prices to Keep Rising

Everyone seems to get scared when prices rise. Maybe you feel like you missed out. Or maybe you worry that what goes up must come down.

Decades of data show the opposite is true. Asset prices that have been rising tend to keep rising. And that's why watching a major breakout is a good thing... not a cause for concern.

That's important to remember – because we're in the middle of a major metals bull market. Gold has been soaring for years. And this year, other precious metals have joined in.

Palladium has been one of the big winners. The metal is up more than 50% this year. These are the highest prices we've seen since 2023. Take a look...

Palladium's breakout is accelerating, too. Again, it just hit a new 52-week high.

This kind of huge rally might trigger the same worries we discussed above. But you don't want to bet against a bull market. The data shows it in this case, too.

To see it, I looked at each new 52-week high for palladium since the data begins in 1993. We've seen 38 similar cases since then. So this kind of breakout happens about once a year.

Importantly, these situations set the stage for outperformance. Take a look...

Few investors think about palladium. But it has been a solid winner for the past three decades, rising 6% per year.

Of course, you can do much better during boom times. Similar instances led to gains of 4.6% in three months, 7.9% in six months, and 11.4% over a year. That's nearly double the typical buy-and-hold return.

These setups also have good odds of success... with palladium rising a year later 71% of the time.

People are focusing on the gold boom. And with the sell-off last week, they're wondering whether the rally is already over.

Giving up now would be premature, though. The trend is still up for precious metals... including palladium.

One way to profit from this trend is the abrdn Physical Palladium Shares Fund (PALL). The fund is the easiest way to get exposure to palladium. And according to history, we can expect prices to keep rising in the months ahead.

Good investing,

Brett Eversole