The pork industry for years has had an advertising campaign that asked, “What about the other white meat?” If you already own precious metals or are considering making purchase, I would ask you, “What about the other white metals?” The “other” metals are palladium and platinum.
Why would anyone consider these as a hedge or even an investment instead of silver and gold? There are several reasons, I will start with the most obvious. What happens if gold is again “confiscated” as it was in the 1930’s? Will you turn your metal in? What if there is a hefty fine and jail time attached to owning or trading in bullion? Yes, you could seek out your local jeweler to fabricate medallions, chains and earrings but this is a lot of work and a lot of risk in my opinion.
What if the same could be said for silver? I highly doubt this would ever happen as the “haul” that government would receive is very small in relation to an already tiny gold market, but what if it did? What if a law was passed that included both silver AND gold?
If there were a confiscation of metal, would platinum and palladium be included? I guess it’s possible but I cannot imagine it. Does it make sense to own any? Personally I think that it does. I believe having 5% or maybe even 10% of your holdings in platinum and or palladium is a good idea and merely diversifies your metal holdings.
There is another reason for the other white metals…”we” in the U.S. don’t produce very much to speak of. In fact, Russia and South Africa are the BIGGEST producers of both platinum and palladium by very large margins. The following link is a breakdown of global production. “Russia and South Africa,” do you know “what” they are? Russia is the “R” and South Africa the “S” in BRICS. Do you recall the recent news about how the BRICS just formed their own central clearing bank to compete with, AND bypass the West’s “SWIFT” system? Does this sound to you like they might enjoy “isolating” the U.S. from a business standpoint?
Let me go one step further and ask you another couple of questions, do you believe it’s possible that Mr. Putin may also know “they” produce the vast majority of these metals? Do you suppose if the current “sanction fest” gets a little hotter and heavier that platinum and palladium shipments might get mentioned at some point? Or, what if (when?) the Ukraine situation turns hot and live fire begins, will Russia be shipping any platinum or palladium to the U.S., a direct enemy of war at that point? Or how about South Africa? Will they break from the BRICS and ship some of their production to the U.S.? Could they use their production as leverage or even blackmail? I wonder if anyone in Washington has even completed this scenario but I sort of doubt it.
While I am on the subject of “other metals” I might as well mention “rare Earth” metals. These have many uses, the most important being military uses. These are 90%-95% produced out of China. If (when?) a hot war, let’s call it WWIII begins, how likely is it that China will be shipping any of the necessary rare Earth metals to anyone other than their closest allies? This is potentially a huge problem for the U.S. which no one has recently even spoken of but I thought I’d mention it.
To wrap up, platinum and palladium are not “silver and gold” from the standpoint they have never been “money” but they are close cousins. They are close enough and rare enough to merit your thinking about owning a small portion as a hedge against confiscation AND the spigot of supply being turned off. They do have jewelry and industrial/technological uses and demand, who knows, given the “right” (wrong) monetary and political circumstances, they could possibly reign supreme in a hyperinflation where gold and silver are legislated as “contraband?” It’s just a thought.
Since we are on what if’s. What if the gov outlaws gun ownership? Do you suspose people would say, well I guess I’ll just turn them in? I suspect, most would say No, ain’t playing that game big brother.
That’s the same response big bro will get if he goes after PM’s. End of storyline.
yes but a lot more gun owners than PM owners.
Bill, thank you for commenting on platinum! I feel it often gets overlooked. I personally think it is a very pretty metal, nearly indestructable, and even more rare than gold (10x as much I believe) and like silver has quite a bit of industrial applications. I especially like the 1/10 to 1 toz coins the US Mint produces. As much as I like platinum however, I just can’t seem to buy anything else but silver as the GSR hit 66 today.
yes Jeremy, silver is the most undervalued on the planet.
They won’t come for your metals on the off-chance.
They will convince your friends, family, colleagues and neighbours that ownership of metals is “unpatriotic”.
They will encourage them to notify the State.
And THEN they will come to your door.
unless the bulk is stored outside of the country.
What does the sheer volume of U.S. $20 Gold Double Eagles, $10 Eagles, $5 Half Eagles, $2.50 Quarter Eagles available on the market today, (ergo NOT melted down into bars and moved to Fort Knox) tell everyone today about that “confiscation” propaganda B.S.? That the confiscated gold thus came from the idiots who had such “deposited” with the Banksters, and not from what people held their Lawful Money Dollars of Gold in their own possession! And a huge difference between “Bullion” (even w/ a “legal tender” value impressed upon same) versus the Lawful Money $ Dollars of gold /silver Coins struck at .900 fine / “90%” (i.e. actual Dollars). “Dollars”, Got Any? Cheers, S. Rex
Here I was, thinking that gold was melted down to make coins.
Be that as it may the only people confiscating coins will be your next door neighbours, because they will be up to all sorts of desperate attempts to survive.
Meanwhile silver is heading down at this time. Sorry. But its like I said back in early July.
Now, A break below $19.75 on a daily chart will see it head much lower to 18.60.
Why is that? Because there is no shortage of silver as many would attest. It suits their preconceived ideas that there is a lot of dollars to be made if the price goes up..
Lately there has been speculators ( god bless them) buying futures and selling metal and having a good time arbitraging .
Patience is a virtue and is very applicable in markets. It is most important to wait till you see an uptrend before buying metal otherwise it is purely trying to predict ( gamble,front run) Sometimes that can work if you are lucky,but that is all.
I am not a buyer of silver at this point till 21.60 ( lowered from last point in time.)
plentiful? Shanghai inventories are evaporating, why?
One thing is for certain.
Silver has not evaporated into thin air.
If it ain’t there in Shanghai then it is likely in another warehouse (s)
If you are a believer in price manipulation then one could also believe that the inventories could be manipulated.
Meanwhile back in the ‘actual’ market the price has dropped out of another little box below 61.8% retracement and is headed to around $18.60.
I am not a buyer now till $20.82.. lower than last ( at this time)
not evaporated, delivered.
Bill you said that stocks were evaporating and implied that they were delivered to somewhere. Warehouses???
Looking at Jeff Clarke’s ” silver inventories mostly held in ETF’s Chart* 24h gold
Government in 1980 had about 2,800,000,000 oz’s. and is now around 800,000,000 Oz
The rest held about 600,000,000 Ozs and is now about 800,000,000 Ozs
So,somehow the Govt’s have have lost 2 billion Ozs less the 200 million Ozs extra the rest are holding currently.
So by my reckoning 1.8 billion ounces have evaporated in the last 25 years according to JC and BH
I suggest that those 1.8 BILLION ozs are still held. Where i do not know.
Maybe its gone into hiding…like not for sale at any offer.
“I suggest that those 1.8 BILLION ozs are still held. Where i do not know.
Maybe its gone into hiding…like not for sale at any offer.” …As in have been delivered out? Now do you understand my metaphor “evaporated”?
Oh yeah…sorry, English is my second language. Missed that one. NOT.
Guess you missed, ( how do you spell it) sarcasm.
Plenty of supply, cheaper prices . Simple really.
What part of steadily going down in price for 3 years is so difficult for you to see and/ or understand?
Always enjoy reading your commentary, and we agree on 99.99% of them. AFA Platinum and Palladium, we have plenty of that metal currently. Russia and South Africa can completely stop exporting those two PMs and the US wouldn’t flinch. Just as easily as the Gov can confiscate PMs, “It” can rescind the “Clean Air Act” and then order everyone with a car to have their catalytic converters removed. There’s plenty of Pd, Pt and even Rh, more than enough to make as many man-killing explosive devices as “It” wants. Many rare earths are in PC’s so there’s a supply of those too.
If you get 30 minutes or so, check out my youtube movie “Chickens on The Tree Lawn – The Movie” http://youtu.be/feFR-9_eevM
Thanks, and keep up the good commentating
So we should exchange all of our gold and silver for platinum and palladium? Is that what you’re suggesting? This is getting ridiculous. I’m starting to question why I ever started buying PMs. Do you really believe The Powers That Be are going to let us precious metal holders win? I doubt it, Bill. Frankly, I’m only 39 years old, but I’m just waiting to die. That’s how I feel.
NO!!! Please RE READ my piece. I only suggested that owning 5% to 10% of your entire metals portfolio in platinum or palladium might not be a bad idea and may work as a hedge of diversification. How in the world did you read what I wrote and come away thinking you should sell/swap all your gold and silver for platinum and palladium???
I only read the first few paragraphs. Sorry, Bill. Long workday today.
I can feel your frustration, go drink a couple of beers and go to bed early. Tomorrow is another day!
The U.S dollar will be 43yrs (add the 4+3=7) as a FIAT currency on 08-15-2014. Also in the date(08-15-2014) you get 8-15=-7(drop the “-” sign like IMF Christine said) and with the year you get 2+0+1+4=7 go figure(remember the numerology number by the IMF chief of 7). Well check this video by MrCati on youtube.
8-17 he said is the date that is critical. I looked at the numbers and got 8-1=7 lets us see what happens come Monday. “7” is a number for completion and this may be the end of the dollar’s reign.
P.S remember the U.S dollar was first a silver coin of honest weight and it will be ironic that the end of the manipulation in the price of silver is the reason the U.S dollar Federal Reserve Note goes up in smoke! As it was in the beginning, so shall it be in the end!
Good suggestions Bill.
I would go for Platinum.
Palladium is up 200% in the last 5 years already. But thats me.