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Post by unlawflcombatnt on Feb 22, 2012 12:43:38 GMT -6
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Post by jeffolie on Feb 22, 2012 18:06:30 GMT -6
Platinum is an industrial metal more so than a metal used like gold as an alternative to a paper currency. With the increase in American manufacturing, it seems likely that traders and speculators are front running an anticipated increase in manufacturing & industrial demand for platinum. Still even with this move, Platinum now trades at a discount to gold although the difference has shrunk. Often Platinum demand comes from catalitic converters found mostly in American vehicles, but other industrial demand exists as well. If China were to get serious about imposing smog controls on their newly sold vehicles, then demand would skyrocket; however, China shows no sign of this intent. General Motors now has domestic factories working 3 shifts in some locations in America whereas only one shift was employed before the demand jumped 300% for Ford's SUVs & crossovers & pickup trucks and to a lesser extent GMs light pickup trucks.
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Post by graybeard on Feb 22, 2012 21:13:50 GMT -6
Like lead, most CAT PMs are recycled, so new car demand is not as big as you would think. Cash for Clunkers cars are still showing up at PickUrPart, so there is still a surplus of PM to work down. The CATs are removed before the public sees them.
GB
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Post by unlawflcombatnt on Mar 3, 2012 10:56:39 GMT -6
The spread between Platinum & Gold continues to narrow.
It's long been my theory that this indicates increased confidence in the economy.
Over the last 3-4 years, it seems that the worsening economic numbers increase the gold price/platinum price ratio, while an improving economy reduces the gold/platinum ratio.
But this is based on "perceived" improvement, not necessarily actual improvement.
And that perception is based on pronouncements by the Government and the Media, not reality.
There is NOTHING on the horizon that is going to pull our economy out of its funk, unless policy makers make an unsuspected turn-around in the attitudes toward Free Trade, and implement Tariffs.
We're going to continue losing jobs until we either impose Tariffs, or until US wages sink to those of 3rd world workers.
But there'll be an armed revolution before the latter happens.
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Post by jeffolie on Mar 3, 2012 13:09:22 GMT -6
The spread between Platinum & Gold continues to narrow. It's long been my theory that this indicates increased confidence in the economy. Over the last 3-4 years, it seems that the worsening economic numbers increase the gold price/platinum price ratio, while an improving economy reduces the gold/platinum ratio. But this is based on "perceived" improvement, not necessarily actual improvement. And that perception is based on pronouncements by the Government and the Media, not reality. There is NOTHING on the horizon that is going to pull our economy out of its funk, unless policy makers make an unsuspected turn-around in the attitudes toward Free Trade, and implement Tariffs. We're going to continue losing jobs until we either impose Tariffs, or until US wages sink to those of 3rd world workers. But there'll be an armed revolution before the latter happens. I agree ... especially if as I predict Republicans sweep the Senate, House and Presidency in the Nov 2012 elections. Transfer payments have soared with the current percentage reflecting the imbalance between money coming into the govt compared to the need of average Americans for government support because of long term unemployment and soaring seniors support costs such as medicare, medicaid. The empathetic Democratic leadership provided seniors and others unemployed support knowing that no income taxes were going to come into the balance resulting with the imbalance of higher borrowing to fill the gap. The politics of the backlash spirited the rebellion against the imbalance so that now the FED buys significant levels of debt where foriegners refused or are unable to buy resulting in the FEDs hitting its targets of manipulate very low interest rate supported by the meme of flight to safety Treasuries buying. In my opionion, America's long term imbalance to military and seniors compounded with long term joblessness guarantees more of the same until the politics of the backlash suceeds in cutting transfer payments. I happen to opine that this will be soon, this coming election. If no sweep, then the backlash will grow providing interim resistence among elected conservative in Congress that cuts spending or resists increased spending on tansfer payments. As far a Doug Short's failure to present charts based on a point of view of what the cost increases are and what the resulting inflation rate is .... he drinks the cool aid by presenting the mainstream and governments numbers ... thus, yes his presentation fails, but does present the manipulated and most viewed points in the mainstream media that those bothering to pay attention to charts happen to see most often. Charts bore average Americans thus make poor ratings, get little time infront of voters.
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Post by unlawflcombatnt on Mar 13, 2012 11:22:20 GMT -6
It looks like Platinum prices have finally caught up with Gold prices again. Historically, this would indicate increased overall confidence in the economy by market actors. However, I don't share that optimism. Real incomes are falling. All this really amounts to is a "confidence bubble." We're creating low-paying jobs when we create them, and we're losing more manufacturing jobs by the day. We're producing little real wealth and we're steadily losing our ability to produce even that. And there appears to be no real will among the political plutocracy to do anything about it--like impose Tariffs.
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Post by jeffolie on Mar 13, 2012 18:05:29 GMT -6
It looks like Platinum prices have finally caught up with Gold prices again. Historically, this would indicate increased overall confidence in the economy by market actors. However, I don't share that optimism. Real incomes are falling. All this really amounts to is a "confidence bubble." We're creating low-paying jobs when we create them, and we're losing more manufacturing jobs by the day. We're producing little real wealth and we're steadily losing our ability to produce even that. And there appears to be no real will among the political plutocracy to do anything about it--like impose Tariffs. The confidence indeed is misplaced ... but for now there is confidence enough to bid platinum up to a premium Today's culture and demographics present a society where the economy depends on spending ... the upper 20% of incomes and wealth about equal the spending of the lower 60% with a middle class that gradually and consistently lost ground during the last 13 years as real incomes eroded and home equity eroded since the levels of 1999 in inflation adjusted Dollars compounded with a demographic shift away from the traditional family towards single heads of households. Spending ... the 800 pound gorilla Today's retail spending report for Feb 2012 shows a rebound that started with upper 20% buyers of SUVs in Sept making now 5 months of rebound or upward spending by the richest classes. I predicted this and expect it to peak in the May to June period with an exhausted, completed peak as the bottom 60% barely participate in the buying spree. After all how many of the upper 20% can buy more than their disproportionate share of SUVs and trucks for small businesses? So for now the question poise by the movie character portrayed by Clint Eastwood, "Do you feel lucky?" applies and IMHO I expect the luck to peak in summer. ======================== Do I Feel Lucky? Hussman Funds By John P. Hussman March 12, 2012 advisorperspectives.com/commentaries/hussman_31212.php Read more: unlawflcombatnt.proboards.com/index.cgi?board=general&action=display&thread=10426#ixzz1p2q8VSQI
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Post by unlawflcombatnt on Mar 22, 2012 23:27:50 GMT -6
The Platinum-demarcated rise in "confidence" seems to be reversing. After surpassing Gold in price for a couple of weeks, Platinum's price is a again falling in relation to Gold's price. Investor's are signaling a turn for the worse-- thought you'd never suspect it from the constant harangue of Corporate media shill optimists.
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