Gold at a bubble or Pt and Pd just undervalued?
EagleQuest
Posts: 1 ✭
Hi, everyone.
Seeing the recent spike of gold with silver following steadily, my curiosity is kindled as to why platinum and palladium are so low relative to the proportion what was present around the late 90's and early 2000's? Is it more likely the case that gold is at a bubble caused by the emotional distress of the federal budget or that the current price is accurately reflecting the rate of inflation and platinum is just straggling behind?
I'm just trying to discern whether this is a time to buy or sell.
Thank you for your input.
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Comments
gold gets more new buyers when PMs get hot. It is the most recognized PM by the uninformed who are now seeking dollar protection. Chinese citizens are now on a buying frenzy.
Buy at this time?
It as at record highs, will it continue? Figure that out and you will be way ahead of the game.
I personally believe silver is the sleeper.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Gold isn't in a bubble, Eagle....the white metals groups, Palladium and Platinum, were bubbles.
They each traded BELOW the price of gold historically but went higher on overenthusiastic auto projections and Russian/South African supply restrictions.
Gold is rising based on fundamentals and will go higher if crypto/Bitcoin stumbles. The fundamentals for palladium and platinum look terrible as EV's displace ICEs.
Palladium and Platinum were / are used in gas engine catalytic converters. Thus, when those cars were the only way to go, those metals were much in demand and very volatile based on the automotive trends. Now of course, electric vehicles are being pushed, and government regulations are attempting to squeeze out gasoline car engines. Palladium and Platinum may be scarce and noble metals.... but if demand is down, price will be down.
Silver suffered during the time period as digital photography grew and film photography phased out. Anyone use film photography anymore?
Platinum and palladium are primarily industrial metals. Their scarcity in relation to gold means little in this regard.
Gold is primarily a monetary metal, so it is impacted much less by industrial demand.
Very little... but something in the 5-10% range of silver supply. But not recoverable unless you want to burn old photos. One thing that is a negative for PGMs is that they are employed such that most of the metal is recoverable. That imposes some limits on how much new material needs to be mined.
Today as John Baptiste Say would say; supply can create demand. [Costco] casinos etc. Nobody's buying EVs or wish they hadn't.
Today's the day. Gold is a screaming buy up to $3000. Silver will rise above $60. Industrial demand will lag an effect for ten years.
Carpe Diem
No gold bubble, the overpriced gutter metals were certainly in a bubble as stated above. RGDS!
The whole worlds off its rocker, buy Gold™.
The push for EVs is still an outrageous, impractical, overly-expensive green energy boondoggle that most people will never be able to afford.
The electricity to power EVs will continue to be generated by other than green energy sources, so I suspect that gas & diesel will remain dominant, except for idiotic governmental policies designed to drive prices into outer space.
Platinum & palladium are used in other industrial applications as well, so the demand for them isn't going to diminish.
I knew it would happen.
Industrial use precious metals (platinum, palladium) are have price set by market demand for their industrial use. Industrial demand might wax or wane with economic swings affecting consumer demand and technological breakthoughs that increase or decrease manufacturing demand.
Gold is, IMO, still undervalued and only starting to reassert it's real monetary value/demand.
$.02 FWIW
Yelling at clouds on pmbug.com
Platinum is a precious metal as well as an industrial metal. About one=third of platinum demand is for jewelry and investment. About one-fourth of platinum demand is for industrial uses other than automotive.
Demand for platinum will not disappear even if internal combustion engines are phased out.
My Adolph A. Weinman signature
Platinum and Palladium are in DEEP trouble with ICE's being phased out.
Platinum and Palladium are in DEEP trouble with ICE's being phased out.
Building an infrastructure for EVs will require massive spending that's completely nuts when coal & petroleum will be required to produce the electricity needed for EVs anyhow.
EVs are already sitting on the car lots and it doesn't bother the crowd of morons that is pushing EVs. All of this is damaging to any economy when ideological government mandates are set to destroy whole industries.
California is the shining star for what to expect when EV mandates are in effect.
Platinum and palladium are a couple of strategic materials that I wouldn't bet against.
I knew it would happen.
My opinion is that silver is the play, much more use for this metal than gold
JMO
Mike
My Indians
Danco Set
Now that plat/pall are around parity, how long does it last? I sold some gld/slv and bought sppp, we'll see how long that trade lasts lol.
Pt/pd dead money IMO. Nobody needs it for anything. Personally, I'd think you'd be better off investing in DOGE/SHIB then the overpriced gutter. RGDS!
The whole worlds off its rocker, buy Gold™.
Now that plat/pall are around parity, how long does it last? I sold some gld/slv and bought sppp, we'll see how long that trade lasts lol.
That trade takes more conviction than I’d have, but mainly because I don’t play the markets anymore.
How’s your sense of timing? Based on recent history going back a few years, it’s true that platinum hasn’t done as well as gold and especially silver in the past few days.
It may be platinum ‘s turn.
I knew it would happen.