A Metal More Precious than Gold

Source: Money Morning, Martin Hutchinson (9/30/10)

"Favored by China, industrial demand for platinum is soaring."

One particular metal currently looks like an even better investment than gold. Favored by Chinese investors and benefiting from soaring industrial demand, this particular PM has risen just 6% this year and remains well below its 2007 peak.

I'm talking about is platinum.

An ideal metallic catalyst, platinum has been used in catalytic converters since the 1980s. Its usage, therefore, is closely tied to automobile demand. Platinum's principal competitor—palladium—is cheaper but considerably less effective. So the pricing of the two metals tends to move in parallel, with platinum 3x–4x more expensive than palladium. This year, however, palladium prices are up >35%, bringing the platinum/palladium price ratio down to an exceptionally low level around 2.5.

The principal market for automobile catalysts today is China, whose auto market last year leapfrogged its U.S. counterpart to become the largest in the world. And August sales were running about 18% ahead of its 2009 totals.

Although Chinese cars use less fuel than those in the U.S., they use just as much catalyst. In the last year, Chinese manufacturers have tended to use palladium catalysts, while Europe uses platinum. But rising global auto demand and the two metals' recent convergence in price has made platinum relatively more attractive.

An additional attraction of platinum is strong demand from investors in China. To the extent that they're permitted to buy them, that country's investors are keen on precious metals in general. In the case of platinum, demand takes the form of platinum jewelry, whose sales in China rose from a 2008 level of 1.06 Moz. to a 2009 all-time record of 2.08 Moz.—an amount equal to about 35% of the world's platinum mine output of 5.9 Moz.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Latin America: Six Gold Juniors Amass 100M+ Ounces
Source: Marc Davis, BNW News (05/25/2010)

Latin America, the world's last great mineral frontier for prolific gold discoveries, is proving a godsend for some lucky investors.

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."

I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .

It's Only the Beginning for Uranium
Source: www.financialinsights.com (06/03/2005)

Dr. Richard S. Appel, author of Financial Insights, first became bullish on uranium in mid-2003, when it appeared obvious that its supply versus demand equation was fated to seriously drive higher its price. Since then, a series of events in the uranium industry has led Appel to believe that uranium prices will reach never before seen levels.

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