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What's Going On In The Commodities Market?


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Gold suddenly has begun diving while platinum is shooting higher. Currently AU is $843 with an AU/PT ratio of .86. Silver also is sliding, but not as quickly (currently at $11.11 as I post this). The AU/AG ratio is 75.93. The dollar is mostly down against most currencies. Anyone got any info/theories as to what is driving the market?

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Saw a ticker tape, accross the 6 pm news last night saying gold demad had fallen becaus of al the lay off's in the electronic industry, So who knows, one guy on the news said gold would get to 1200 an oz in just a few months after Obama takes office. Grubstake

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Anyone got any info/theories as to what is driving the market?

Lots of investors who are afraid of the future. Platinum is used a lot in new cars (in the catalytic converters). Since the auto market is in the tank, projected platinum demand is down and so platinum prices are soft.

I do think gold prices are in for a good run in the coming years because of bloated government budgets with massive overspending and gigantic deficits which will lead to another serious bout of inflation. However I think this will happen in the long run, probably not in the first few months of the Obama administration. I think in the first few months the economy will stink and be moving very slow, thereby holding down inflation.

Chris

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From the looks of my local gas staion, maybe I should buy gas, its gone up 30 cents in two days. Or maybe I'll just eat a bowl of Chillie Beans. That way, I won't have to buy it, I'll just have it. :laught16::laught16: Grubstake

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From the looks of my local gas staion, maybe I should buy gas, its gone up 30 cents in two days. Or maybe I'll just eat a bowl of Chillie Beans. That way, I won't have to buy it, I'll just have it. :laught16::laught16: Grubstake

Yep, same here, fuel has shot up over $.60 a gallon this month!

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Yeah but Oil is dropping yet again. I think gas will go back down a bit.

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I think it is amazing (and piggy on someone's part) that gas prices have gone up as much as they have in the past week or so. Oil prices haven't gone up and supplies are higher than anticipated. 30 cents a gallon is a huge increase.

What has always amazed me is how all the gas stations in one area have the same price day after day, week after week.

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Well I agree with that, but thats the big Oil companies. The price will have to go down to $35.00 and hold for a bit and it will go back down. Its not far from that now at about $37.00 a barrel now.

I do wonder along those lines though if, Big Oil is scared of the new administration coming in and wants to make some extra money, before they do? Everyday and every penny adds up to big big bucks.

But I also think that BHO is gonna add some tax to the gas. That will through a "wrench" in our works...

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Well I just bought 500 gallons or Agriculture Diesel (dyed red for non highway use) I told my supplier I wanted to get it now because prices are going up, He told me that the wholesale price was accually dropping. Figure that one out. Mybe it is the stations who are ripping us now. Bob

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Guest bedrock bob
Well I just bought 500 gallons or Agriculture Diesel (dyed red for non highway use) I told my supplier I wanted to get it now because prices are going up, He told me that the wholesale price was accually dropping. Figure that one out. Mybe it is the stations who are ripping us now. Bob

I

isn't it a shame when we ponder who is ripping us off now?

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Hello again everyone.

While it is true that platinum is up out of the cellar from a few weeks ago when it was actualy priced lower than gold for the first time I can remember, it might not be wise to automaticaly expect a huge surge in price when the economy gets turned around and auto sales start to rise again. Mazda has recently developed a new technology that uses 70 per cent less platinum in it's catalytic converters. The use of this technology isn't widespread yet but I expect that by the time auto sales rise again, many of the other auto manufacurers will have gotten onboard with it. I am not sure what role platinum plays or will play in hybrid and electric car technologies. Perhaps someone more knowlegeable than me can bring us up to speed on that.

I have been thinking of what has been happening with the recent prices of precious metals and it has occured to me that we might be headed in the same direction that we just got out of with the price of oil. There was no actual shortage of oil or any of it's byproducts such as gasoline and no real reason for the price to go up as high as it did. The problem was that greedy speculators and middlemen were buying it all up and causing an un-needed panic. That panic situation allowed the speculators to feed on that frenzy and charge what ever they thought they could get away with. Well, they got away with a lot, didn't they. Once the jig was up so to speak, the speculators had to back away into the shadows with their profits and find another game. That game just might be precious metals.

The price of physical gold has been on a rollercoaster for the past few weeks. I have read that while the demand has been up because of those people who are buying physical gold as a defense against the falling values of certain currencies such as the Euro and US Dollar, the price has been held down by the world's central banks selling off their physical gold reserves and thus preventing too much of a shortage. I am not sure for how long and even if the central banks can keep this up before they either run short of or even out of their physical gold reserves. If and when that happens, there will most likely be a panic resulting in a skyrocketing in the price of physical gold.

These are interesting times, indeed.

Cheers, lvlagnum.

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Hello again everyone.

While it is true that platinum is up out of the cellar from a few weeks ago when it was actualy priced lower than gold for the first time I can remember, it might not be wise to automaticaly expect a huge surge in price when the economy gets turned around and auto sales start to rise again. Mazda has recently developed a new technology that uses 70 per cent less platinum in it's catalytic converters. The use of this technology isn't widespread yet but I expect that by the time auto sales rise again, many of the other auto manufacurers will have gotten onboard with it. I am not sure what role platinum plays or will play in hybrid and electric car technologies. Perhaps someone more knowlegeable than me can bring us up to speed on that.

I have been thinking of what has been happening with the recent prices of precious metals and it has occured to me that we might be headed in the same direction that we just got out of with the price of oil. There was no actual shortage of oil or any of it's byproducts such as gasoline and no real reason for the price to go up as high as it did. The problem was that greedy speculators and middlemen were buying it all up and causing an un-needed panic. That panic situation allowed the speculators to feed on that frenzy and charge what ever they thought they could get away with. Well, they got away with a lot, didn't they. Once the jig was up so to speak, the speculators had to back away into the shadows with their profits and find another game. That game just might be precious metals.

The price of physical gold has been on a rollercoaster for the past few weeks. I have read that while the demand has been up because of those people who are buying physical gold as a defense against the falling values of certain currencies such as the Euro and US Dollar, the price has been held down by the world's central banks selling off their physical gold reserves and thus preventing too much of a shortage. I am not sure for how long and even if the central banks can keep this up before they either run short of or even out of their physical gold reserves. If and when that happens, there will most likely be a panic resulting in a skyrocketing in the price of physical gold.

These are interesting times, indeed.

Cheers, lvlagnum.

Interesting to say the least...I think we sometimes forget that although the Dollars strength sways the price of gold in a Major way, the amount of physical gold on the market has a strong influence on its value as well.

Nathan.

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Enigmatic Engineer.

You are absolutely right. Many people don't realise that often the rising or declining price of physical gold isn't so much due to a higher or lower demand and or an increased or reduced supply as much as it is due to the rising or declining value of the US Dollar that it's price is based upon. That is why there is an attempt afoot by certain countries to start basing the price of physical gold on a more stable currency. Of course, when you add the supply and demand factor in to the mix as well, it makes for some very confusing and intersting physical gold price trends.

Cheers, lvlagnum.

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I

isn't it a shame when we ponder who is ripping us off now?

"I dream of a more peaceful world were a chicken can cross the road without being questioned about his motives"

I ignore most of this spam my sister sends me but this quote stuck and seams fitting.

Carl

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I seem to recall that the emerging auto industry utilization of fuel cell technology relies on substantial amounts of PT (although new design breakthroughs should reduce the percentage of PT required). Thus, this mid-term demand (5 to 10 year horizon for fuel cell vehicles to become a significant mainstream item) may be what is tickling the PT values higher. Gold's dropping value also may be linked with the falling price of oil (a unit of oil having become firmly established as one of the touchstone measures of international value). The AU/AG ratio over the last month or so appears to be steadying in the 75 to 78 range. Seems to me to be a good time to pick up more AU or AG if you can afford it.

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Carl.

If there truely is such a place, then I think Garimpo already lives there.

Micro Nugget.

I forgot all about the use of platinum in fuel cells. Thank you for reminding me. You are partialy right about the tie in between the prices of oil and physical gold but there have been times in the very recent past when the price of oil has skyrocketed and the price of physical gold has dropped like a stone.

Another precious metal worth watching is Rhodium. It is used in jewelry and high-tech auto, medical and electronic products. Less than a year ago it was selling for $10,000 and ounce. That's right, $10,000 and ounce. Now it is priced at about only $1,000 an ounce. I can see the price comming down a bit because of the downturn in the economy and resulting reduction in the quantities of consumer and luxury goods being produced and sold but that seams a bit much. Could this be evidence of the futures speculators doing their evil deeds again? You tell me.

Cheers, lvlagnum.

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Fear and greed, I love it, I can relate with fear and greed. Speculators just go along for the ride, a lack of speculators is when it really gets crazy like with rhodium. Or uranium from $10 to $170, and especially the housing bubble. I'm surprised gold didn't go higher, with the banks implosion and the world currencies chasing the dollar down. Without the bailout who knows how high gold would have gone.

As I understand it, through much of the 90's mining companies held gold back by selling too much forward, got themselves stuck that way, and speculators no doubt noticed it and piled on. Demand for platinum might not be what is was, i also think there were mining problems in African pt mines that helped push the price up. With that said it makes sense whats going on today.

I would still expect gold to go back to about a 40% discount to platinum, hydrogen fuel cells may never get produced they will alway be right around the corner. I wouldnt make that bet without a good reason thats for sure. Just stand back and watch everyone pile on in the mean time.

I don't have any money on the line and i sold all my gold last year, I just find it interesting.

Quick check on ebay looks like 1 oz bullion coins are selling $100 over spot. I dont know it thats fear or greed, it must be fear and greed combined :confused0013: anybody have a cheap gold mine for sale

Carl

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