2. The greater industrial utility of platinum (arguably)
3. Greater volatility, smaller market, greater liquidity
We need to remember that platinum has performed far better than gold, and as a speculative instrument platinum was bound to be sold off. Car manufacturers would be cutting back of their needs for catalyst materials, so precipitating the price fall. The asset collapse is scaring people. But I suspect we are very close to a turn-around in this metal, and therefore platinum stocks. This metal might even do better than gold. The metal is already back to $950/oz. It has broken its uptrend, so we would be looking for a support. It might be $650/oz. Hard to believe many producers in South Africa could be profitable at those prices given the escalation in mining costs.
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Andrew Sheldon www.sheldonthinks.com
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