Finding value in precious metals

Charting grand energy shifts via commodity ETFs

Percent returns since 2008

• Since 2008, gold has outperformed major commodities.
• Palladium’s exuberant chart tracks volatility in the green energy sector (for which palladium can be a key commodity).
• Platinum and oil have underperformed over the same time (with both down nearly 50% and likely influenced by renewable energy growth).

Palladium vs. ICLN renewable energy ETF

Since 2013, the clean energy sector (as represented by the popular ICLN renewable energy ETF) has seen grown significantly. Yet its market capitalization has also experienced great volatility — with a recent boom and bust from over 300% down to nearly 100% currently.

Increasing market share for alternative energy has likely been contributing to oil’s rock-bottom prices. In addition to ramping supply from North America — from which the U.S. has become the world’s dominant producer while Canada has also been increasing its share.

Global oil production (millions of barrels)