Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: CusterInvestor who wrote (60209)	1/21/2010 2:05:42 AM
From: TobagoJack	Read Replies (1) \| Respond to of 219734

he is an austrian, literally, and he was asked, i quote ... player 2 Thanks for that, very helpful material, and well put. >>It's not quite clear yet if the hoarding is based on expectations of a resumption in genuine demand or if it is based on growing inflation fears - maybe it's both, but if it's primarily the former, then a disappointment is likely in store. I assume here you mean that another opportunity to acquire platinum/palladium may show up real soon now <g!>... player 1 both look short term overbought to me, but i note that the PGMs are very unique markets. there is currently no economically viable substitute in sight for their main industrial application, and prices are probably a secondary consideration (up to a point) given the small amounts of the metals used per catalyst unit. then there's the fact that these markets are very small, so they can move a lot on relatively little additional demand (additional demand comes now in the form of more ETFs). and lastly, they are in a primary supply/demand deficit and have been for a while. that said, from a psychological standpoint, the same considerations apply as in the case of silver - the industrial demand component (or put another way, waxing/waning economic confidence) is the primary determinant of their price relative to the gold price. obviously in 2009 they have profited both from increasing economic confidence and the supply/demand deficit. note also that per experience, palladium tends to be the lagging market (time-wise, the last to run and peak in rally phases).