Looks like gold and platinum are toe to toe!

OldEastside

whos gonna win?

Steve

CaptHenway

Buh-Bye, platinum!!!!!!!!!!!!!!!!!!!!!!!!!!

vann

<< <i>whos gonna win?

Steve >>



Seems like gold and silver are expecting more QE from the FED. The problem is the FED has already pumped close to 3 trillion in QE since 2009 and even with interest rates near zero, GDP growth has been less than 1% total the past two years, signifying the debt saturation point has been hit and no matter how much more QE that FED tries, the result will continue be zero growth and more inflation. Without more QE from the FED, the economy tanks. Debt service costs will increase as it will become harder to attract buyers of our debt to finance government spending, the only thing currently supporting the economy. Given these scenarios and the expected worldwide slowdown, it seems gold which is a monetary metal, will continue to outperform platinum which is a 'good time' metal largely dependent on industrial demand.

MoneyLA

I look at it this way: Gold is a measure of the world's anxiety, and what is happening with platinum and silver prices reinforces why gold is rising. Platinum and Silver are more industrial metals. Gold going up shows the level of worry that the world economy is headed for another slowdown. And because of the slowdown, there is less need for silver and platinum.

pmcollectour

<< <i> Gold going up shows the level of worry that the world economy is headed for another slowdown. And because of the slowdown, there is less need for silver and platinum. >>



If Gold is going up now because of the level of worry of a global slowdown, then why did Gold go down in 2008 when there was not only worry, but financial panic ?

MoneyLA

Do you want to talk about history, or what is happening right now?

PerryHall

<< <i>Do you want to talk about history, or what is happening right now? >>



Why not both? Certainly we can learn from the lessons of history.

PerryHall

<< <i>Platinum and Silver are more industrial metals. >>



Sounds like silver and platinum may be a better long term investment since this recession isn't going to last forever.

TwoSides2aCoin

<< <i>whos gonna win?
>>




Anyone ordering today will be ahead in the race for cheap catalytic converters.

CaptHenway

<< <i>

<< <i> Gold going up shows the level of worry that the world economy is headed for another slowdown. And because of the slowdown, there is less need for silver and platinum. >>



If Gold is going up now because of the level of worry of a global slowdown, then why did Gold go down in 2008 when there was not only worry, but financial panic ? >>



A plausible explanation is that during the Crash of 2008, investors who were getting killed in the stock market were dumping their diversification metals to cover margin calls and other losses. One of the advantages of diversification, I guess.

jmski52

Platinum had an amazing run due to the power shortages in South Africa in 2008. Gold was also affected, but not so much as platinum was. This is different.

They both have impressive fundamentals and I think you could throw darts at the gold/platinum dartboard blindfolded without too much concern.

roadrunner

Recession or not, Asia is growing by leaps and bounds. That means lots of new cars even if the Western world's demand is stagnant. There will be plenty of demand for PGM's.
While plat is not a monetary metal like gold it's still precious and a good hedge. Maybe gold outperforms it, but I don't see plat lagging that far behind gold. If gold gets too far
ahead of platinum a lot of people will see the gap and diversify into plat. The South African platinum miners continue to be a mess. I can only see tougher restrictions, more strikes,
less reliable electricity, potential nationalization, and increasing royalty fees in the years ahead. That only helps the price of plat.

roadrunner

mixman

Platnium should win out in the long run, but gold will have the stronger hand until the economy turns around...

In the poll thread from last week I think I picked sometime next year for Gold and Plat to cross. Looks like I might have been off a little bit.

CaptHenway

<< <i>Recession or not, Asia is growing by leaps and bounds. That means lots of new cars even if the Western world's demand is stagnant. There will be plenty of demand for PGM's.
While plat is not a monetary metal like gold it's still precious and a good hedge. Maybe gold outperforms it, but I don't see plat lagging that far behind gold. If gold gets too far
ahead of platinum a lot of people will see the gap and diversify into plat. The South African platinum miners continue to be a mess. I can only see tougher restrictions, more strikes,
less reliable electricity, potential nationalization, and increasing royalty fees in the years ahead. That only helps the price of plat.

roadrunner >>



China is the world's largest polluter. Do Chinese cars even have catalytic converters?

pf70collector

eems like gold and silver are expecting more QE from the FED. The problem is the FED has already pumped close to 3 trillion in QE since 2009 and even with interest rates near zero, GDP growth has been less than 1% total the past two years, signifying the debt saturation point has been hit and no matter how much more QE that FED tries, the result will continue be zero growth and more inflation. Without more QE from the FED, the economy tanks. Debt service costs will increase as it will become harder to attract buyers of our debt to finance government spending, the only thing currently supporting the economy. Given these scenarios and the expected worldwide slowdown, it seems gold which is a monetary metal, will continue to outperform platinum which is a 'good time' metal largely dependent on industrial demand.

Private industry holds over $2 Trillion in cash reserves. The Fed pumping free money into the stock market is not going to help. But they will continue to do this because its all they know how to do. I think QE3 will be used to bail out Europe before us. They don't have a clue of what 's going on. Find a way for private industry to invest in America not the Fed.

jmski52

Reports of platinum's demise have been grossly exaggerated.

OzzyAndy

Gold will keep going up as the economy keeps going down, platinum doesn't stand a chance in the medium.

On another note, it's good to see some normality return to this board after all the flaming on the weekend, felt like it was a riot out there, a bit scarry.

jmski52

Platinum closed at $1,819 today, with gold closing at $1,771.30.

Gold's turnaround seems like it happened pretty quickly. We shall see.