Long Live Platinum
General consensus among gold investors seems to be that the sky is falling, the sun is dimming, the US dollar is dead, and the recession will never end. In addition, the euro will shatter into at least 12 pieces, taking trillions of euros of government debt and rendering it good insulating material for the coming apocalypse. Also, don’t forget according to the Mayans, the world is coming to an end in 2012.
Buy gold – that’s the consensus. But what happens if the oceans recede, the sun rises again, and the economy is re-built? Will gold keep its Beanie Baby popularity in a recovering economy?
We believe inflation will come, government debt and total debt to GDP is out of line, and government spending versus current revenue is not sustainable. Yet we also believe that the earth will keep spinning and the apocalypse is nowhere near.
We like platinum. If hyper-inflation comes, platinum prices will correlate with gold prices as we head into the stratosphere. We will actually use platinum in an economic recovery; we put it in cars, technology, and teeth. As China decides that breathing is not overrated, they’ll need more and more platinum to put on the end of tailpipes in order to reduce smog levels to where it is possible to see the sun.
What makes platinum comparable to gold in a down market is it is also small, possesses a dense value to price ratio, and is extremely rare. If the US dollar completely collapses, we will go onto a gold, silver, platinum, copper standard. We will not go onto a gold-only standard because we do not have enough to go around.
People are buying gold for protection against the end of the dollar. Why not buy something that is useful and not just pretty?
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