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 ...
Hmmm... I’ve been thinking about silver these days.
Same here. I have enough lead stocked up.
Better to buy some of each, just to be safe.
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.
Besides catalytic converters, what other things is Platinum used for? Electronics?
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?
I started moving from stocks to platinum in mid-2007, after the Dems took Congress, and I am damn glad I did.
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! ;)
Catalytic converters apply to gas-burning vehicles, which will be a decreasing share of the market when the Chevy Volt/Tesla come into production.
“when the Chevy Volt/Tesla come into production”
What about after they fail?
Is there a lithium market?
See http://en.wikipedia.org/wiki/Platinum under "Applications" for more info.
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.
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.
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 .
Did you get the advice from an investment letter or did you decide this on your own?
On my own...
Platinum is a high manufacturing demand metal, and stays high.
It’s not as volatile as gold, either.
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.
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