So, if history repeats itself ...

wondercoin · August 9, 2011 12:47PM

Will platinum spot likely start to rise well above gold spot, just like it did in December, 2008 when gold spot surpassed platinum spot for just 1 single day?

Thoughts?

Wondercoin

jmski52 · August 9, 2011 1:09PM

I don't believe that the situation is the same as in 2008. As much as I like platinum, I don't see it gaining much, other than from the ongoing devaluation of the dollar for at least the 2-year period that the Fed has declared interest rates will remain low due to the anticipated crappy economy.

The Fed is out of bullets. I think that the trend will continue towards gold for the forseeable future, and that platinum will continue to stuggle upward to a much lesser degree, in line with industrial production expectations.

derryb · August 9, 2011 1:11PM

I believe you will see gold come down below platinum once the Fed gets the market back where it wants it. Money will flow out of gold and back to Wall St.

vann · August 9, 2011 1:50PM

2008 was a very different market than what we have now. In the US, people still felt their home was worth something more than the amount they owe, the full effects of long-term unemployment or the debt crisis on consumer confidence were not yet known and the FED had not even begun with QE. Likewise, in Europe, the EURO sovereign debt crisis from Greece, Ireland, Portugal, Italy, Spain, etc had only started to materialize. With China overtaking the US as the largest auto market in the world, American and foreign companies are eager to throw American consumers under the bus, as the growth potential is far greater in emerging markets. It's going to be a long road to recovery when the leaders in charge have not yet even begun to address the problems.

Guess who's building a car factory in China?

renman95 · August 9, 2011 2:36PM

I keep reading everywhere that 2008 is different than now, 2011. It implies that 2008 was worse than now, right? That's how I understand it. Am I wrong? But I think now is worse than then. In 2008 we had the failure of a few long held institutions starting with Lehman. In 2011 we have the beginning of the end of the US in credit terms plus a few Euro countries and a possible global recession. Maybe it's 2012 that will be worse than 2008.

derryb · August 9, 2011 4:43PM

I say that this time is no different. Failure to address and correct the causes of 08 can only result in them resurfacing once the make-up wears off. Only difference is we turned a corner and now the can is being kicked down a different street. Maybe this time it will turn out to be a cul-de-sac.

MoneyLA · August 9, 2011 7:33PM

Its not that platinum prices fell, its that gold prices rose as much as they did.

If gold prices stay at these high levels, platinum prices could rise once the fear of a new recession eases.

57loaded · August 10, 2011 7:02AM

i'm in agreement with jmski52

Justacommeman · August 10, 2011 7:31AM

I don't think platimum and a poor economy mix so well

2008 set of problems and 2011 set of problems are different. In most cases I think 2011 is worse. Currently, we still have some of the residual artifacts of pre-2008 crisis (overhang) and some of the "freshly made" ones that were created in trying to solve that crisis. The unintended consequences. They maybe coming home to roost at the same time. Economic and policy shrapnel. Don't forget to duck everyone in awhile..............at odds and at the other side of the dichotomy ledger is that you have great corporate earnings and cash balance sheets that are burgeoning. Cause and effect? Shoring up operational costs via payroll and cost costing? Where is all that corporate cash gonna go?..........Interesting times we live in. MJ

So, if history repeats itself ...

Comments