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Bad debts in the Plat sector

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Dutch
Frequent Contributor
Are our miners at risk now because of the failure of the parties to agree to the $15bil auto bail out?
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13 REPLIES 13
barry_1
Super Contributor
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For some reason, though, the miners are not getting whacked in New York...
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Sorry, I was looking funny, I guess 11% off AMS is enough punishment...
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WR
Regular Contributor
something not right with our mining stocks... US is getting a stick, but even DRD is riding. our Au stocks do not want to go south
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barry_1
Super Contributor
Bush used Auto innovation re-less smog etc for banks,will now use banks money for bail-out of Autos....They seem to think it will work,as they cannot afford to have another failure.
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WR
Regular Contributor
what some wise people are seeing and therefore asking for a re organisation in bankrupcy. If the US bails out the auto industry, they have to keep giving it money. If they dont sell cars, whihc no one is buying due to economics, how are they planning to raise money..
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back to the original question, will a bankrupt GM or Ford really have a material impact on the platinum price? Surely there will just be a demand gap left for someone else to fill (Toyota, perhaps). They all use platinum just the same.
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DR_1
Super Contributor
platinum is also used extensively in catalysts in most chemical processes, so apart from auto, the demand could be pared with teh down turn in chemicals and other processes
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barry_1
Super Contributor
Platinum has many uses,including being a precious metal,but at least half the platinunm production went for catylitic converters.One of its sister metals which amount to about the half the mined content,in the eastern limb of the Bushveld namely PALLADIUM is mostly used in converters....Now the Palladium price has fallen during this year from over US $1000 to about $180!
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i agree with everything you mentioned except the palladium price it topped out february 2008 at $575 and is currently at $171
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barry_1
Super Contributor
then it must of been in an earlier year that its price went dramitcally ,though dont know by how much,i remember when they started mining in earnest on the eastern limb ,it was for the very reason that more palladium occured in my backyard,so to speak....i also remember that within a short period of time there after they were sorry that they opened this area and felt that they should have concentrated on tha PLATREEF around Potgietersrus(Polokwane) where the percentage platinum to palladium was greater.
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june 1990 $99 june 2000 $1105 june 2005 $150 february 2008 $575 december 2008 $171
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barry_1
Super Contributor
yes i,ve done some research and have found an old annual report of Messina platinum mine,which was later absorbed by Implats....In 2001 they state:-"Decreasing pressure from the industrial sector has exerted pressure on PALLADIUM which has plummeted to $1094 per oz." It seems that somewhere before that the price as far as i can gather was 60% higher!....I remember it was that high price that caused a paladium rush at the time....In the same report they state that the PLATINUM price was $645 per oz....An exact reversal of things today....The other fact was that Russia had stored paladium for the cold war and by with holding it,manipulated the price.
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