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FSN: Why Rick Rule Bought $280M of Platinum and Palladium
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
by Karen Roche
The Gold Report
When Rick Rule pairs lower grades, labor strife and inefficient mines with the relentless demand for platinum and palladium, his result is an investment thesis that could pay off for bullion and equity investors. In his Metals Report interview, the founder and chairman of Sprott Global Resource Investments Ltd. compares the current platinum and palladium space to the uranium sector 10 years ago, and predicts handsome returns for investors willing to shoulder the risk.
The Metals Report: Your report, Platinum and Palladium, predicts a 915,000-ounce (915 Koz) deficit in platinum and palladium this year. Does your investment thesis treat the platinum group metals (PGMs) more as precious or industrial metals?
Rick Rule: The answer to that is both. PGMs share the same investment characteristics as bullion. For centuries, PGMs have been a means of exchange and a store of value. Platinum and palladium enjoy the monetary attributes of bullion, just like gold and silver. But they also have industrial utility. Unlike gold and silver, which have large above-ground inventories, the above-ground, refined inventories of platinum and palladium have largely been used. There is less than 12 months’ fabrication demand left in the world supply. Platinum and palladium go out a tailpipe, up a smokestack or get turned into high-value jewelry. Some people suggest that jewelry is still supply, but I know my wife does not consider her jewelry to be supply.
Continue Reading at TheAuReport.com…
2013-04-02 13:32:59
Source: http://silveristhenew.com/2013/04/02/why-rick-rule-bought-280m-of-platinum-and-palladium/
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