Discussion in 'Bullion Investing' started by lonegunlawyer, Oct 2, 2012.
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Myself I like Pt, always have. I don't own much, and always did mean to own more. If I had a chance to buy some at a reasonable premium, (premiums on these always seem to be high), I probably would.
Agreed short term. I think the OP means long term. I agree with Jim automotive applications will have an effect, but have always like the long term prospects since its used so much as catalysts, is used heavily in Japan for jewelry, and is so bloody rare. Its just a metal I wished a little more of for long term holding.
I was hoping nobody would bring the technicality of free and efficient markets and the invisible hand of Adams into it (not that that is bad).
I agree, industrial demand is very important.
Silver did not really shoot up until after the Japanese reactor meltdown and tsunami.
However, Pt seemed to run twice the price of gold from approximately 1982 until about 3 years ago. Also, nice diamonds are much more plentiful than other beautiful quality gem stones, but they command higher prices.
Diamonds are cartel priced and the demand has been created by a successful marketing campaign that entrenched them in the minds of the affluent as being equal to love all the while shew-shewing the perfection of man made as essentially too perfect (no...actually just too cheap and uncontrolled). Thankfully, PM is mostly absent of such ludicrous abuses. e.g. Show me a low cost way to turn lead into gold and I'll show you an instant and irrecoverable crash in the market price of that PM! Not so with Diamonds. *sigh*
If you are into diamonds you may want to read this:
Personally I would think people coming to their senses and figuring out diamonds are simply not that rare, and shouldn't be a "requirement" for wedding rings should be a bigger threat to that bloody industry.
Anyhoo... like I said before, the danger of analyzing whether Pt is "undervalued" versus anything else is that the other thing has a different market as well. Comparisons always trip you up. Comparing versus gold is especially troublesome since gold was held down for a long time by government selling and other things. Pt has never really been affected by that to a significant degree.
Look at Pt, look at scarcity, and then analyze anticipated demand. That is the basics. The only thing that makes me squeamish about Pt is potential new ways of making "artificial" catalysts. That would hurt the Pt pretty severely.
Hear ye, hear ye.
However, when gold started taking off about 5-6 years ago seemed to coincide with a couple of major world disasters, the really big and permanent jumps in gas prices, and even more rapid economic increase in China.
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