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Gold/Mining/Energy : Pacific North West Capital Corporation-PFN on Alberta -- Ignore unavailable to you. Want to Upgrade?

To: Andrew who wrote (1695)	5/30/2000 8:37:00 PM
From: koan	Read Replies (1) \| Respond to of 2255

My theory on PGM prices: I believe PGM prices will hold above $500 because I think that price reflects the general cost of producing PGM's directly. Most PGM's (70 to 80%) are produced as the result of credits to nickle and other mining. In the past there was enough PGM by product to meet demand. In recent years demand has exceeded supply. The only way to meet demand is to mine PGM's directly. It seems that a grade of 1.5 grams per ton is actually a rather high grade in the general distribution of PGM's. PGM's are spread throughout the earth very thinly (i.e. not clumped up like gold and silver often are) and more often at depth. So, we may be at a time when we have to mine PGM's directly to meet demand and the mkt will figure out based on PGM's rarity and difficulty in mining what that value is. The other variable that is a real wild card is the speculative demand; and in Asia and other places many are now preferring platinum to gold (gold being old fashioned) for jewelry. PGM's have almost mystical qualities for industrial use (they don't clog up when used for catalytic conversion) and they possess many other very unique properties. As long as demand exceeds supply the price should stay past $500 per oz, I would think. One is not going to open up a nickle mine to get pgm credits; and it seems it will take a price north of $500 per oz to keep supply and demand in equilibrium. However, this theory could be dead wrong <g>.