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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: dalroi who wrote (96620)	12/6/2003 10:28:31 AM
From: IngotWeTrust	Read Replies (2) \| Respond to of 116944

After Bob answers, I'll give you my take on your question if you like, but you did ask him first.

To: dalroi who wrote (96620)	12/6/2003 3:12:29 PM
From: IngotWeTrust	Read Replies (1) \| Respond to of 116944

In a nutshell, 2 reasons: 1) global recession reduced new car buyers' pool dramatically in recent times. Acc'd to my research, and the numbers vary, but the one I'm most comfortable with is that catalytic converters account for approximately 48% of total PGM category usage. Total PGM usage means all the PGM family members, all 6. So, Pt, Pd, and Rh in particular found consumptive automotive demand reduced. 2) Reduced automotive PGM demand leads to inventory build-up. Everyone knew that Russia was stockpiling PGMs, Pd in particular because Russian miners were perceived as being capricious in their pricing and in there reporting of available ounces, by holding it off the market. No one knew except their high up govt officials over there who had how much of which kind of PGM on hand. It was not until Norlisk made its move on SWC, the Montana Palladium/Pt mining company, offering to pay part cash and the rest with 877,000 palladium ounces deposited in London Bank persuant to closing the deal and subsequent transfer. That was the first time an actual number had emerged, indicating the size of the Pd overhang. It is my understanding that November-ish through December-ish is the customary time for renegotiating contracts with the various USA auto manufacturers. Evidently said re-negotiated contracts is going smoothly, as I've not heard a peep from the industry over here who is now getting Russian Palladium feed to them through SWC existing contractual delivery obligations. I truly believe it is friendly to the long term pix that this overhang is now gone, and that Norlisk has indicated just how serious it wishes to be taken as a reliable supplier of PGMs to the automotive industry here stateside, and probably around the world. The following URL is the thread I started to talk about PGM pricing and events surrounding that vital issue. I don't post frequently there as it is under the radar of most, thereby creating opportunity, with limited liquidity of course. Message 18358596 Contrarian investment at this time could be a pleasant surprise in this sector. I'm early. So are others. But the Palladium party looks to me to have started. G/L