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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (12240)	12/31/2001 2:56:44 AM
From: energyplay	Read Replies (1) \| Respond to of 74559

Hi Jay -- The price premium for the platinum coins seems high to me. I looked at Kitco asking price for a gold 1 oz. Eagle vs. spot gold - premium was 5.5% For the Platinum Eagle coin, the premium was 8.5%. Thinking about the much higher volitility of Platinum, this may actually be reasonable- The price of gold is unlikely to suddenly move down more than a $ 20-25, or about 10% Platinum has had much larger swings, and lots of Russian manipulation. If automobile (particulary big SUVs, which use big Catalytic converters, sometime two of them) sales drop, Pt could drop with them. I think part of the extra premium is compensate for that inventory risk. I can see Pt dropping $ 80-100 in about three weeks easy if auto sales drop - that's about 20%. And also because they can get the premium...;-) Since I anticipate a move of about 2X, a 8.5 % premium is not all that bad...