# Rh price



## markqf1 (Aug 18, 2009)

Why would you think, on a day when US automakers announced increased production, that the price of rh would go down?

I'm sure they already had an inventory stockpile, but still, 

Maybe when they revealed that fact, it caused a downturn in price.
Maybe it's the South Africans.
Maybe it's the Russians.

I would like to think that in the end, it will all come down to supply and demand and the demand will be up. :lol: 
I say , hold what you've got for awhile.

Mark


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## Oz (Aug 18, 2009)

I do not think the little decrease today had anything to do with fundamentals.

Have you noticed the chunk down the other metals are in the last 2 days including base metals?

Supply and demand hasn’t changed that much it is more a function of nervousness in the China equity markets and the effect this is having on other equity markets and currencies valuations.

Rh has held better than most this week in light of the DOW performance.


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## markqf1 (Aug 19, 2009)

Oz,
I agree, it was a small decrease.
My common sense tells me that I don't fully understand this "new" global economy. :lol: 
Seems like you have a better grasp on it than I do.
Tell me, I'm curious, ... what would you recommend for the "rookie " of world economics like me?

Gold and pgm's, I'm sure, from reading your posts.
Fiat money has a limited lifetime just as everything does.

A little off subject,.. I know. :lol: 

Mark


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## Oz (Aug 19, 2009)

markqf1 said:


> Gold and pgm's, I'm sure, from reading your posts



Wow, that is a big subject. I can’t take the time to write in detail on this for a bit as I have just gone from slow work to 2 jobs at once.

Surprise! Silver would be my bet.

Here is a short answer as to why I like silver medium to long term. It is an industrial metal that we have been consuming more of than we have been producing for some time. It is seldom recovered from most of its uses due to the fact it is not cost effective at today’s prices. Governments in general no longer have strategic reserves of it to plug a hole if people become aware of a supply problem. There are more paper naked shorts trading than there are ounces of silver to cover them. It occurs in the ground at a ratio of 16-17:1 of gold and it held that ratio of value to gold through most of history. Today it is at 67.5:1 gold/silver ratio, how do you get that when it is not as replaceable as gold for most industrial processes and there is far more above ground gold than silver available and have today’s pricing.

In a good economy we will have shortage problems somewhat soon given its industrial use.

If the economy gets worse, they will be shutting down the base metal mines that happen to produce 70% of the world’s silver annually as a byproduct. This at a time that silver will be in greater demand as a monetary metal due to fears of fiat currency devaluations, which seems to be the only fix central banks know of these days through “quantitative easing” when the markets and banks are down.

Silver outshines them all, figuratively and literally.

I hope that quick burst makes sense. I’m off to bed.


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## markqf1 (Aug 20, 2009)

I just might take your advice and see what silver brings to the table.
I sure am more facsinated with pgm's though! :lol: 

Mark


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