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Global Investors Turn Platinum Over Gold
businessinsider ^ | Jan. 25, 2010 | Vince Veneziani

Posted on 01/25/2010 9:24:12 PM PST by Jet Jaguar

Gold continues to be a wildly popular global obsession, but the winds may be changing a little.

Why?

Platinum is undervalued, out of the public eye (compared to gold), and production is set to expand as auto manufacturers begin producing more vehicles.

Investors are even beginning to go long platinum while simultaneously shorting gold:

Bloomberg: Even after a record 57 percent rally last year, platinum is cheap relative to gold, signaling more gains as demand grows from carmakers and exchange-traded funds.

“We are long platinum and short gold,” said Jonathan Barratt, the Sydney-based managing director with Commodity Broking Services Pty, who predicted platinum’s rally in September. “Gold remains under pressure. As inflation moves lower and the dollar goes higher, gold isn’t as solid.”

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy
KEYWORDS: economy; gold; platinum; thecomingdepression

1 posted on 01/25/2010 9:24:12 PM PST by Jet Jaguar
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To: Jet Jaguar

Hmmm... I’ve been thinking about silver these days.


2 posted on 01/25/2010 9:29:17 PM PST by Trajan88 (www.bullittclub.com)
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To: Trajan88
I've been thinkin hot lead and cold steel .
3 posted on 01/25/2010 9:31:15 PM PST by kbennkc (For those who have fought for it , freedom has a flavor the protected will never know F Trp 8th Cav)
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To: Trajan88

Same here. I have enough lead stocked up.


4 posted on 01/25/2010 9:33:56 PM PST by Jet Jaguar
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To: Jet Jaguar
The play with platinum is its use in catalytic converters and other high-temperature and high-tech uses. Gold remains a monetary metal; personally I think it will go higher by the end of the year.

Better to buy some of each, just to be safe.

5 posted on 01/25/2010 9:35:17 PM PST by ikka
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To: Jet Jaguar
Bloomberg: Even after a record 57 percent rally last year, platinum is cheap relative to gold,

uumm Platinum is ~$1550 an Ounce, Gold ~$1100

As inflation moves lower and the dollar goes higher, gold isn’t as solid.”

uuummmm WHAT????????

Let me guess, every month this guy finds the unemployment numbers "Unexpected" and actually believes we are in a recovery.

That being said, I did buy some Platinum Eagles awhile back, they probably are the most beautiful coins ever made.

6 posted on 01/25/2010 9:35:51 PM PST by qam1 (There's been a huge party. All plates and the bottles are empty, all that's left is the bill to pay)
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To: ikka

Besides catalytic converters, what other things is Platinum used for? Electronics?


7 posted on 01/25/2010 9:36:27 PM PST by ak267
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To: Jet Jaguar

Fine, go long platinum if you buy this whole recovery narrative, but short gold? Look, if the SHTF or we start seeing sovereign debt defaults (Greece, for starters), and the EU fracturing, people are going to pile into what metal?


8 posted on 01/25/2010 9:40:35 PM PST by zoomdownrotorswhirring
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To: Jet Jaguar

I started moving from stocks to platinum in mid-2007, after the Dems took Congress, and I am damn glad I did.


9 posted on 01/25/2010 9:40:58 PM PST by tcrlaf (Obama White House=Tammany Hall on the National Mall)
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To: qam1
Bloomberg: Even after a record 57 percent rally last year, platinum is cheap relative to gold,

uumm Platinum is ~$1550 an Ounce, Gold ~$1100

Of course that's cheap relative to gold, just look at their respective worth in Dungeons & Dragons! ;)

10 posted on 01/25/2010 9:46:05 PM PST by Styria
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To: ikka

Catalytic converters apply to gas-burning vehicles, which will be a decreasing share of the market when the Chevy Volt/Tesla come into production.


11 posted on 01/25/2010 9:48:21 PM PST by research99
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To: research99

“when the Chevy Volt/Tesla come into production”

What about after they fail?

Is there a lithium market?


12 posted on 01/25/2010 9:51:37 PM PST by Jet Jaguar
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To: ak267
Platinum has a high melting point, so it is often used in applications like temperature probes that need to have a melting point higher than the heat generated.

See http://en.wikipedia.org/wiki/Platinum under "Applications" for more info.

13 posted on 01/25/2010 9:53:54 PM PST by ikka
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To: ak267

Google “platinum uses” and you will find lots of stuff. Yes, electronics; also chemical catalysts other than automotive, jewelry, medicine, thermocouples, hard drives, spark plugs, and on and on.


14 posted on 01/25/2010 9:55:25 PM PST by hellbender
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To: research99
I can't speak to when the Volt will be in production, AND when it will be a significant number of new cars on the road.

With millions of cars sold per year worldwide, the projected 40,000 to 100K of Volts sold per year would still be a drop in the bucket.

15 posted on 01/25/2010 9:56:17 PM PST by ikka
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To: ak267
what other things is Platinum used for

What kinds of metals will be needed to build mosques all over this country after the dhimitude ? That could be the way to get in front of this thing .

16 posted on 01/25/2010 10:01:45 PM PST by kbennkc (For those who have fought for it , freedom has a flavor the protected will never know F Trp 8th Cav)
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To: tcrlaf

Did you get the advice from an investment letter or did you decide this on your own?


17 posted on 01/25/2010 10:12:56 PM PST by edboock
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To: edboock

On my own...
Platinum is a high manufacturing demand metal, and stays high.

It’s not as volatile as gold, either.


18 posted on 01/25/2010 10:30:12 PM PST by tcrlaf (Obama White House=Tammany Hall on the National Mall)
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To: Jet Jaguar
Heard the Palladium/Platinum ETF pitch/piece on Bloomberg Radio today. The guy was hyping these ETFs, saying how these metals are required for the different types of catalytic converters... and was saying that even with a depressed US automobile market, outlook should include growth in the China domestic automobile market.

I was screaming at the radio... the big demand for these precious metals is MERELY FOR LEGAL COMPLIANCE.

I doubt Chinese cars have MUFFLERS, let alone CATALYTIC CONVERTERS.

19 posted on 01/25/2010 10:34:26 PM PST by Rodamala
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To: kbennkc
I've been thinkin hot lead and cold steel .

Might wanna invest in rope futures and lighter fluid. I think theres going to be a big demand on those as the people surround D.C.
20 posted on 01/26/2010 5:00:36 AM PST by Overtaxed Patriot (Lock and load.)
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To: ak267
Besides catalytic converters, what other things is Platinum used for? Electronics?

I've heard of platinum blondes.
21 posted on 01/26/2010 5:01:37 AM PST by Overtaxed Patriot (Lock and load.)
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To: zoomdownrotorswhirring
Fine, go long platinum if you buy this whole recovery narrative, but short gold? Look, if the SHTF or we start seeing sovereign debt defaults (Greece, for starters), and the EU fracturing, people are going to pile into what metal?

Any metal that produces ammo.
22 posted on 01/26/2010 5:02:53 AM PST by Overtaxed Patriot (Lock and load.)
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To: ak267

.....Platinum used for?....

Jewelry


23 posted on 01/26/2010 5:04:10 AM PST by bert (K.E. N.P. +12 . Tax the poor. Taxes will give them a stake in society)
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