Palladium remains the most valuable precious metal, and there’s reason to believe it’s also going to be the most rewarding over the next few years.

So how to play it?

One answer: Canadian Palladium (BULL.CN; DCNNF.OTC) — a company with a resource that could triple or quadruple in size in short order.

Dear Fellow Investor,

In the midst of a gold bull market, a specialty precious metal like palladium can get overlooked.

But as we enter a volatile interlude for gold, palladium continues to stand tall as the highest-priced precious metal — and perhaps the one with the most potential going forward.

Oh sure, palladium prices (along with the rest of the precious metals suite) have taken a hit recently as investors try to get their bearings in an unusual market.

But as a precious metal whose primary uses are industrial, palladium’s fortunes are mainly determined by irrefutable supply-demand fundamentals.

As you’re about to see, while short-term volatility may temporarily obscure those fundamentals, the overall structure of the palladium market argues for much higher prices in the long term.

And as investors look for the best way to play this trend, their eyes will inevitably stop on the story developing at Canadian Palladium (BULL.CN; DCNNF.OTC).

Supply-Demand Imbalance Supports Higher Prices

Palladium’s primary use is in the manufacture of catalytic convertors, which help gas-powered vehicles reduce emissions.

With so much talk about growing demand for electric vehicles, most investors forget that demand for internal combustion vehicles is not only still massive, but continues to grow.

That’s even more true in the wake of Volkswagen’s Dieselgate scandal, which shifted the European market away from diesel-powered vehicles toward gas-powered ones.

On the supply side, palladium is mainly a by-product of base metals mines, making it difficult for palladium supplies to respond to growing demand from automakers.

Add in the supply-chain instability of Russia and South Africa (palladium’s two largest producers) and you have a market starving for reliable supplies of this key component.

This year alone, analysts are forecasting a 574,000-ounce palladium shortfall.

A Resource That Could Triple Or Quadruple

Canadian Palladium’s flagship East Bull project in northwest Ontario puts it in the proverbial catbird’s seat.

Consider this: As a palladium-intensive project, it isn’t at the mercy of the base metal markets for production.

And this: East Bull already has a sizeable, 523,000-ounce inferred palladium-equivalent resource that is amenable to low-cost, open-pit extraction.

All by itself, this resource argues for a marked re-rating in Canadian Palladium’s share price.

But that’s just the tip of the iceberg.

As you can see from the map below, the deposit at Bull has lots of room to grow.

Laterally, the current resource spans 2,200 meters (with a 400-meter gap), while the overall trend of the mineralization runs for 3,600 meters along strike.

And, given that the initial resource is outlined only to 120 meters depth, the company sees an opportunity to potentially double the resource by simply drilling it down to 240 meters.

The upshot? The drills are turning right now on a program that could result in a tripling (or even a quadrupling) of East Bull’s current palladium resource if the mineralization continues to depth.

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A Team With 157-Fold And 18-Fold Gains On Their Resumes

In case you’re wondering whether the team at Canadian Palladium is up to the task, consider this: This group has produced not one, but two money multiplying stories for early shareholders.

The first involved the Rainy River project in British Columbia.

Wayne Tisdale and Gary Clarke formed the Rainy River company in 2005 and went on to develop the project into a multi-million-ounce resource.

Early investors in Rainy River paid as little as C$0.25 a share for their positions (~C$7 million market cap). New Gold would eventually takeout the company for C$1.1 billion.

That’s a 15,700% gain!

Then, in the late 2010s, Tisdale and Clarke did it again, this time taking advantage of the energy metals trend by creating U.S. Cobalt.

The company started with a market cap of C$8 million, and within a year, hit a peak market cap of C$149 million — an 1,850% gain.

Now, this dynamic duo appears poised to turn a hat trick by parlaying East Bull’s proximity to key infrastructure into a big payout for Canadian Palladium shareholders.

Nearby Infrastructure And Easy Ore Access Makes For A Compelling Takeout Target

Location matters in real estate, and it sure matters in mining.

East Bull’s position a mere 90 kilometers west of Ontario’s mining complex at Sudbury makes it a compelling takeout target.

With a resource that’s already near-surface (and just a short drive to a major Canadian highway), mining this project becomes a simple earth-moving and ore-hauling exercise.

All needed infrastructure for an operation of this type is close at hand. Plus, the project sits in close proximity to major vehicle manufacturing facilities.

Breaking News:
First Assays From 10,000-Meter Drill Program Hit Long Intersections Of Mineable-Grade Palladium

Just as this report was going to press, Canadian Palladium reported the first results from its 10,000-meter drilling program to expand East Bull’s inferred resource.

To say those results were promising would be an understatement.

Holes 21 though 25, drilled along East Bull’s central area, included the widest intervals of palladium mineralization reported to date on the project. Highlights included:

• Hole 22: 71.0 meters of 1.1 g/t palladium-equivalent

• Hole 21: 66.0 meters of 1.1 g/t palladium-equivalent

• Hole 23: 55.0 meters of 1.0 g/t palladium-equivalent

• Hole 24: 11.0 meters of 1.9 g/t palladium-equivalent

These are very mineable widths of palladium mineralization, and they’re all within 150 meters of surface.

This bodes very well for the rest of this program, which now shows every sign of delivering on East Bull’s growth potential!

Make Palladium’s Trend Your Friend

There are good reasons why palladium is outpacing gold in terms of pricing.

And, especially with the drills turning up long widths of palladium, there are good reasons why Canadian Palladium makes for a compelling lever on the metal.

Consider:

• The supply deficit for palladium hit 574,000 ounces in 2019, and it’s forecast to grow in the years ahead.

• Since it’s mainly a by-product of base metal mining, palladium supply isn’t easily ramped up to meet the demand for emissions-reducing catalytic convertors.

• Canadian Palladium controls an easily mineable, palladium-intensive resource that currently stands at 523,000 ounces and could dramatically expand as the current drill program continues.

• Drilling is already turning up long intersections of mineable-grade palladium — and another 14 holes from that effort are at the assay lab.

• Temporary weakness in the precious metals markets has created an outstanding entry point for Canadian Palladium.

• This is a team with a track record of delivering big gains for early investors!

Add in East Bull’s location close to Sudbury, and you have a high-potential project that could quickly become a takeout target in the next 12-18 months.

The market is giving you a chance to get in on the ground floor with Canadian Palladium.

But with the drills hitting consistent widths of palladium, your window of opportunity may close quickly.

Considering palladium’s bright future, it’s an opportunity you don’t want to pass up.

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To Learn More about Canadian Palladium