Platinum Plunge

[EJ]

Here's something you don't see every day...

What did I tell you about platinum during a "Ka" disinflation?

[Jim Nickerson]

Re: Platinum Plunge

I cannot remember what you said and certainly not where you wrote it. Hint?

[EJ]

Re: Platinum Plunge

I cannot remember what you said and certainly not where you wrote it. Hint?

The search function in vBulletin is capable:

Platinum does poorly in "Ka" disinflationary periods, even worse than gold:

"Investment demand for platinum is a wildcard. Demand for investment-grade metal has been extremely volatile over the last ten years. In the year 2000, investment demand actually went negative as hoarded supplies were dumped onto the market."

[Finster]

Re: Platinum Plunge

Here's something you don't see every day...

...

What did I tell you about platinum during a "Ka" disinflation?

Not that it's not real, but the last time I saw a similar move in a metal was in copper, about a year ago in August. Down something like 20-30% in a tick. It turned out to be a data anomaly at Kitcometals.com.

It's a good idea to look for some independent confirmation for such outliers. In this case, a few minutes ago on Bloomberg January platinum futures were down just a few dollars.

If it really is down over $200, back up the truck ...

[bart]

Re: Platinum Plunge

Here's something you don't see every day...

What did I tell you about platinum during a "Ka" disinflation?

[/CENTER]

I think that was a hiccup in Kitco's data feed.
Here's a current live chart:

[Finster]

Nya nya nya nya nya nya

I think that was a hiccup in Kitco's data feed.
Here's a current live chart:

A day late and $200 short.

I already called attention to that.

:p

.....

[Finster]

Re: Platinum Plunge

Here's something you don't see every day...

... [/IMG]

What did I tell you about platinum during a "Ka" disinflation?

Well you are looking pretty prescient, EJ. Some wild action in platinum the past 48 hours, with spot price swings on the order of 5%-10% in a matter of minutes. All time record overnight Monday ...

Platinum extended its rally late last week with a sharp 5.6% gain on Monday. Japanese buying throughout the Asian
session kept the momentum going as it lifted the metal from early lows of $1,185 offered into the $1,200’s. Platinum
received a further boost in Europe as heavy borrowings in the metal tightened the forwards market, prompting heavy
speculative buying as liquidity was squeezed further in an already illiquid market. Trade remained volatile through to
the New York session as it posted a high of $1,262 bid before closing at $1,256 bid. Although this $67-gain seemed
impressive enough, this was outdone by an even more blistering performance in Asia on Tuesday, as platinum rallied
some $130 higher at its highest point just shy of the $1,400 mark. Extreme volatility in platinum could be expected as
the market reacts to the higher borrowing cost and could prompt more short covering in the interim.

http://www.kitco.com/reports/Standard/nov212006.pdf

[WDCRob]

Re: Platinum Plunge

I read something a few days ago suggesting someone's looking at introducing a GLD/SLV-style ETF. Not sure how related that would be...

[Jim Nickerson]

Re: Platinum Plunge

I read something a few days ago suggesting someone's looking at introducing a GLD/SLV-style ETF. Not sure how related that would be...

CEF already exists and has gold and silver, and is treated as a mutual fund for tax purposes, as is the same company's new gold fund GTU. CEF since I have followed it sells at a premium 9.9% last night, and GTU sold at .8% premium. These are closed end funds as opposed to the ETF's GLD, IAU, SLV.

GTU http://www.gold-trust.com/asset_value.htm

CEF http://www.centralfund.com/Nav%20Form.htm

[jk]

Re: Platinum Plunge

i believe wdcrob was referring to a possible platinum etf, similar to those for silver and gold.

[Finster]

Re: Platinum Plunge

i believe wdcrob was referring to a possible platinum etf, similar to those for silver and gold.

I think so, too. There is some confusion between closed-end and open-end ETFs. The traditional "closed end fund" issues a set number of shares in a formal offering, and the number of shares does not change except in the case of a formal offering. The newer open-end ETFs (like traditional mutual funds) can issue and redeem shares on the fly. It's more of a pass-through vehicle in the sense that investor demand for shares flows through to the underlying holdings. Because of the latter's flexible float, the shares tend to trade at a market price quite close to the net asset value of the underlying portfolio. Larger divergences tend to be arbitraged away fairly quickly.

CEF is a closed-end ETF, while IAU, GLD, and SLV are open-end ETFs.

[Finster]

Re: Platinum Plunge

I read something a few days ago suggesting someone's looking at introducing a GLD/SLV-style ETF. Not sure how related that would be...

Probably highly related, WDCRob. At least Bloomberg has been reporting that the surge and subsequent slump had to do with speculation on the introduction of a platinum ETF and the subsequent demise of said speculation ...

[Jim Nickerson]

Re: Platinum Plunge

Platinum Falls Most in More Than 6 Years as Investors Doubt ETF

By Feiwen Rong and Danielle Rossingh


http://www.bloomberg.com/apps/news?p...er=commodities