Gold Heads for Weekly Rise on Safe-Haven Demand

Discussion in 'Bullion Investing' started by Cinco71, Mar 27, 2022.

  1. Cinco71

    Cinco71 Well-Known Member

    Article from U.S. News & World Report also notices the increased movement toward gold and silver, but not toward platinum and palladium. Wonder why those two aren't getting as much love?
    daniel a DiBiasio and JCKTJK like this.
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  3. daniel a DiBiasio

    daniel a DiBiasio Well-Known Member

    i'm surprised too that platinum and palladium are not skyrocketing since Russia is one of the main producers of them.Maybe it's because of the shortage of new cars being produced due to the chip shortage.
  4. terky

    terky Active Member

    Gold and silver can and should be classified as a true currency, its value is intrinsic, it is not backed by any government, it is backed by itself. Theoretically these 2 metals should rise in value when inflation is running hot (why? > because it takes more fiat currency from any country to purchase as those currencies inflate.

    Now this fact should apply to all commodities and goods in general > Palladium is really a commodity who's value is governed by the demand for it, which directly correlates to the need for catalytic converters in the gasoline powered vehicle industry.

    Palladium has increased in value and often dramatically (look at a price chart over the past 90 days). It is quite true that the metal comes in large part from freshly mined Siberian locations. (about 40% coming out Russia). Auto makers can always turn to Platinum for catalytic converters. Looking back over the last decade we saw the use of Platinum for this purpose replaced by Palladium. (I remember clearly, and and only a few years ago when the value of these 2 metals flip-flopped) as the auto makers turned to palladium and its price has risen dramatically as a result.

    Lately due to both inflation, the demand for more vehicles brought on by the shortages created by Covid and the fact that so much of it comes from Russia all add up to huge swings in its value governed by geopolitical factors, news in the media and a myriad of other factors. So if you like gambling > go fool with Palladium it will save you a trip to the casino.

    Gold especially is more stable than any of these other metals including silver. This is so because so little of it is used in industry by comparison. Its value is determined by humans trying to find a safe place to hold value with the added enticement that that demand will push its value even higher than it otherwise might be.

    Platinum over the course of time seems to be the best place for growth that may eclipse gold, but if you like to sleep at night there is nothing like a shot of Goldschlager.
  5. Heavymetal

    Heavymetal Well-Known Member

  6. -jeffB

    -jeffB Greshams LEO Supporter

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