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Gold/Mining/Energy : Platinum Group Metals (PGMs) -- Ignore unavailable to you. Want to Upgrade?

To: Ptaskmaster who wrote (311)	3/24/2000 10:50:00 PM
From: Ptaskmaster	Read Replies (1) \| Respond to of 529

Significance of TOCOM's palladium contract default.- Ted Butler has been thoughtfully probing and studying the silver market in ground-breaking essays for some time. He well understands the importance to precious metals markets and end users of the TOCOM Pd default: "The wake-up call for the silver users is the Tokyo Commodity Exchange's (TOCOM) default on its palladium contract. This default has changed everything for the silver users. It is fitting that the sea change has emanated from Japan in the form of a default, because it was the Japanese management technique, just-in-time inventory, that made this palladium default so special. After almost 2 decades of reaping the financial benefits of the Japanese model of zero inventories, the industrial palladium users (primarily the automobile manufacturers) woke up to an inventory nightmare. Overnight, a palladium contract wasn't worth the paper it was printed on, because the delivery feature was suspended - the shorts couldn't deliver. What is not being reported about the TOCOM default is that, default or not, palladium is still being bought by the users - just not on the TOCOM. That market is dead (forever). What is also not being reported is that the price being paid for real palladium is not reflected in the published price on the tainted TOCOM (or NYMEX). I'm sure real palladium is changing hands north of $1000 oz. currently in private deals between the consumers and Russia. My proof? - how much is real palladium worth, if the exchanges are selling paper palladium, that you can't get delivery on, for $650 oz? General Motors or Toyota can't put TOCOM palladium in their emissions systems, they need the real stuff." From "Silver Users - Grave Danger Ahead" by Ted Butler. posted March 24, 2000 on Gold-Eagle, full essay at gold-eagle.com