Suppression Of Platinum & Gold Prices?

Hey! It's the greenscreen guy!

Well, I think it all depends on demand. If you have a super ice cream that is only made once in 5000 years, sure it's going to be more expensive than the one machine made. But, if your 5k ice cream starts to melt, you have to sell it at a price meeting your demand.

Never mind. Once the economy pics up again, platinum will be over at least $2500.

As for right now, the stimulus is probably going to fail, so stock up on: Yen, Dollars, Metals in that order because if the stimulus fails, people will start demanding a haven to put their money in that doesn't inflate. As of right now, a big part of that haven currency is the dollar.

The 'big boys' selling off their paper precious metal futures to meet their margin calls when the Dow was in freefall last October was hardly a government 'artificial suppression' of spot prices. That was a big paper sell-off that had nothing to do with the 'small-scale' physical bullion market. If anything, the paper futures sell-off only increased demand for physical gold/silver! And now that the 'big paper' is sold off, we don't have that 'boat anchor' on spot values anymore. (just look at the Kitco charts from November 2008 onward, even Platinum is recovering from the bottom trough...)

As for the Platinum coins, I would say that's more of a case of 'numismatic value'. High-grade slabbed Eagles of any sort do sell for more than raw coins. All Platinum coins are very low mintage. The U.S. Mint recently discontinued all of the 'collector' versions except for the one-ounce Proof, so that adds extra numismatic value to the discontinued versions. In fact, even the 2009 Platinum Eagle one-ounce Proof may not be produced (Mint News Blog), thus increasing demand for 2008 and earlier coins.


Platinum spot price won't go past $2K until new car sales rise significantly (thus creating demand for platinum in their catalytic converters), so don't hold your breath for a big rise in platinum until 2012-2015 or so... Even if the economy is still struggling in 2012, demand for new cars may slightly rise simply because of age and attrition of the existing vehicle fleet (which of course increases when large numbers of people aren't buying new cars!).

Yes, I do think that Platinum will go back up rather nicely once there is a full economic recovery. But even you don't think that's going to happen anytime soon (as I quoted above), so why not buy gold (or even silver) for now and gain some value during this 'depression', not just after it ends?

That said, Platinum would be a good thing to grab just before the economy recovers (2012 to 2015?!).

PS: Your videos are neat!