platinum going down the tubes ?

[sishya]

what is happening to platinum - down to $1500, while Gold is at $1650.
Last time this happened EJ put a call to buy Platinum.

I believe the game has changed now and I guess EJ senses this too.

All the Industrially useful metals getting spanked, while the useless metal Gold is holding better.

if they diverge more - what does this mean ?

- There is only one possible explanation Central Banks and the Indian/Eastern fetish for Gold will be the only reason.
- Central Banks cannot horde platinum or silver because they are useful metals and industries need them and cannot create scarcity or price rise.

Anyone want to comment on this recent divergence between platinum and Gold. something strange is happening. Maybe EJ can comment on this recent phenomenon.

[aaron]

Re: platinum going down the tubes ?

I feel like there is something in these numbers and they tell you something.

Palladium --> 95% industrial metal down big today ~ down 5%
Platinum --> Mostly industrial metal, but has some "monetary" value. Down 1.5%
Silver --> Up 1% .
Gold --> Up 2% ... It is a 100% monetary metal.

Perhaps somebody knows the beta of silver versus gold (it seems to be 2x these days).

So, in my mind today silver lost 3% due to its industrial value and gained one percent due to its monetary value. All else being equal, silver should have gone up 4% today as a 2x version of gold.

Does this mean silver is 25% monetary and 75% industrial?
Platinum, on other hand has pretty much followed gold 1:1 over the past couple of years. The fact that it did drop 1.5% today seems to me to show that platinum is less monetary than silver but more than palladium.

I am not sure if it means anything, but it is something a computer could probably spit out.
I can see buying industrial metals as a defensive move in expectation of inflation.

[touchring]

Re: platinum going down the tubes ?

Palladium is very volatile. It could fall to 200-300 bucks if there is a recession. In a sense, it is quite predictable, buy Palladium in a recession and sell when gold shoots up.



http://www.kitco.com/scripts/hist_ch...rly_graphs.plx

[Techdread]

Re: platinum going down the tubes ?

That sounds like Silver too.