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Did You Miss The Palladium Party?

This engaging headline is the beginning of a story on www.mining-journal.com which notes that even if you didnt buy Palladium a year ago at about $906, catching the ride to today's price north of $1500, you can still get on board. Although I haven't read their full story, it is apparent that their theme is to buy Platinum today. To me and to mining-journal.com, this is obvious and I believe a low risk opportunity and what will be regarded as an excellent entry point.

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There's Something Happening Here!

Early this morning, Monday, 3/25/19, April Platinum traded as low as $841.5. The market doesn't really know how to make sense of a $1500+ Palladium price and this low Platinum number, and as a result, there has been lots of volatility.  Metals have traded up since then, with April Platinum at $854.5. As any reader of my Blog and my eBook know, all these moves in the $800s are just noise; Platinum is dramatically mispriced at these levels, but the marketplace doesn't yet understand why.  The eBook provides lot of detail around the themes of limited supplies, critical uses which generally have no substitutes and the likelihood of even chaotic upward moves in the PGMs as people begin to appreciate...

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The Conditions At ESKOM Are A Huge Red Flag!

I have written about ESKOM, the troubled South African utility, in numerous blogs and in my eBook. Here's a quote from South African President, Cyril Ramaphosa, as reported by Fin24's newsletter: "We will overcome this electricity crisis engulfing the country at this moment. We will overcome it, just as we overcame the apartheid challenge."  My reaction? By elevating this crisis to an equivalence to apartheid, whose end is the fundamental raison d'etre driving South Africa today, Ramaphosa is truly underscoring the seriousness of this situation. I don't think the Platinum market, where over 70% of the world's supply comes from South Africa, is truly paying attention to the risk inherent in a deeply troubled utility, and the implications for PGM...

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Where Are The Platinum Bugs?

Sure doesn't seem like there are any "Platinum bugs!" There is no interest. The market has been a total dog. Investment demand has almost been non-existent. But isn't that the way it is at market bottoms? Nobody cares!? Well, you should care, because the pricing of this PGM is just to cheap! That is an objective statement that Platinum is an excellent investment today, and a subjective statement that I would be a buyer of Platinum before any precious metal.

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A Surprise for the Gold Bugs!

I would have thought South Africa represented an important percentage of the world's annual gold production, and as such, given the travails of ESKOM, the South African utility, that would have suggested a bullish bias for gold investment. In fact, South Africa represents only 4.1% of the world's annual gold production. With total 2018 Gold production of 3346.9 metric tonnes (per Gold Hub), here are the figures (per the US Geological Survey), all in metric tonnes (1 metric tonne = 1000 kilograms; 1 kilo = 35.2739619 ounces), by country: China: 455 Australia: 270 Russia: 250 United States: 209 Canada: 170 Peru: 150 South Africa: 140 Mexico: 125 Uzbekistan: 100 Indonesia: 100 What is my surprise? I would have expected that...

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