Rocky Road ahead for Platinum – Prices set to fall

Rocky Road ahead for Platinum – Prices set to fall


Welcome to illuminati Silver, we tell you
the truth about silver. Today is Sunday 27th September 2015 and we
are producing this video to warn about a rocky road ahead for Platinum over the next few
months. A few days ago, we produced a video on the
Volkswagen Car Group and how they manipulated exhaust emissions. We did this as a precursor
to what we believed to be the likely consequence – a worldwide investigation into diesel
motor cars, and a detrimental effect on the price of Platinum.
The auto Industry accounts for almost 30% of global Platinum usage according to Mitsui
& Co precious metal analysts – the metal is a key raw material in auto catalytic converters
used in diesel engines, and in Europe diesel cars represent 45% of sales.
Phil Flynn of CME Group pointed out that diesel engines use Platinum and petrol based vehicles
use Palladium in their catalytic converters therefore suggesting that demand for Platinum
will fall and demand for Palladium will rise as people move from one diesel vehicle to
a petrol vehicles. Some metal analysts and investors predict
that the price of Platinum could fall below $900 as a result of the Volkswagen emissions
scandal. ABN Amro believe that the price could fall as low as $800.
Spot Platinum fell heavily last Tuesday and hit a near 7 year low on Wednesday at $929
before recovering slightly to $932 and ending the week on $947. Interestingly, Palladium
ended the week up at $662 Michael Sheehan, Senior Portfolio Manager
at US based Orion Commodities Management stated “at some point Platinum and Palladium prices
will go to parity …. My guess would be between $700 and $850.”
We have been asked a number of times of our views on Platinum by subscribers and on each
occasion we have expressed our short term concerns over its price because of the global
slowdown in car sales. Naturally this emissions situation is likely to cause further downward
pressure. Only yesterday Switzerland issued a ban on certain types of diesel motor car
sales, and we foresee this continuing throughout Europe while other manufacturer’s vehicles
are also tested. Added to that, the World Platinum Investment
Council’s most recent report showed that Platinum jewellery demand for the second quarter
of 2015 declined 11% quarter on quarter, while refined production from South Africa increased
by a similar percentage. So we are bearish short term on Platinum and
a little bullish on Palladium while this situation becomes clearer and the rest of the world
has responded to the Volkswagen debacle. We hope you have found this video useful.
If so, please give it a thumb up, comment and if you haven’t already done so, please
subscribe. Also it would be very helpful if you could share this on twitter and follow
us @illuminatisilv1. Disclaimer: Silver Illuminati owners come from a background
of Banking, International Wealth Management and Economics. Having now retired from these
worlds we are not qualified to give investment advice. Therefore, this and other productions
must not be deemed to be giving such advice and merely represent the personal views of
its owners.

26 Comments

  1. It will be interesting to see how this plays out in the platinum and Palladium markets. I appreciate your research and insights.

  2. Another debacle in the automotive industry. I think is is just the tip of the iceberg in the flawed diesel industry. I understand heavy plant machinery and trucks being diesel, but cars !? There is a very inherent risk with diesel engines and their noxious particulates that they belch out. These particulates have been observed to embed themselves very deep into the bronchi of the human lung creating a cumulative toxic effect, no less than 91 per cent of the particulates and 95 per cent of the nitrogen dioxide come from diesel exhausts.

    The fact that VW have been ratted on is not the real story either. I think in time this will be seen to be industry wide and will probably have received some sanction from Govt bodies thanks to covert lobbying within the House of Cards by the usual Corporate suspects.

  3. Over the years the construction industry for small and large excavators backhoes skidsters excetra have went from what they call tier 1 tier 2 tier 3 and now tier 4 the smallest engines are being phased out because the cost to bring them up to tier 4 last tier 4 requirement brought most small motors up in cost by approximately $6,000 so a small 70 horsepower diesel runs about $25,000 now just for the motor I don't fully understand the emissions design for these motors but I can tell you the manufacturers are all over it coming up with very sophisticated compliant motors which in my opinion if there's a problem with platinum or palladium or silver they will find a way to work it without it.

  4. thanks for the info….. i must say tho, if platinum is purposed to be more rare and harder to find than gold you would expect gold to be around the same price. some think that boggles me to a degree….. but i understand the reasons why it is so tho.

    some think i forgot to post in my recent video would be to take into account the price of silver to production cost and previous performance….. the premiums on silver right now are not justified by the production cost because……

    $7.32 silver in 2005 oil price $50.04 2005 <<< ???

    not including inflation adjusted prices… or manufacturing processes…. look at the current prices and its not justified.

    have wages and manufacturing gone up that much!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! even tho the price of steel is becoming so cheap that are own industry's in the uk are suffering.

    to me from looking at all the factors at first glance without even digging down to numbers…. it smells bad to me!!!

    what is going on in your own opinion?

    we can call it manipulation but i would really like a good explanation or even a link to some think that can put some perspective or shine some light on the underlining problems we see in these area's.

    platinum going lower but premiums even at there high levels are still rising… i am not complaining i am just wondering why my platinum investment is rising as the price falls…. What……the……..Feck

  5. diesel motors are not going to disappear, if platinum goes to $700 an ounce it will be the buy of the century! they will need much more platinum to meet the new standards for diesel engines- Platinum is much rarer than gold.

  6. When I owned a big truck, it had multiple catalytic converters, all cut from under my truck. The police that responded clearly stated that they were stolen for their precious metals.

  7. thanks SI I bought a couple ozs when the price went down now it seems poised to go farther the low in 2008 was 802 and change that was in nov 2008 dec 2008 it went back up ………..but 800 range I would think it might be a buy at that price ………what do I know thank you as always wondered when you were going to get to this :-)……….

  8. I see the future in electric cars, which I believe will in the long term create even less of a demand for industrial platinum. Id rather buy a tesla model III for 30gs than a gas or diesel car for 15 or 20gs. As with anything as the technology and competition increases the costs will drop. I would predict 15g fully electric cars on the market in the next 10 years. People see these Tesla's beating Ferraris in drag races on youtube, and get a different perception of electric cars. Thoughts?

  9. Does this mean Palladium will go up 30% or will the auto slowdown keep the price suppressed? If there is a simple fix for the catalytic converter in the VW diesels, will this all become moot?

  10. Auto sales are down granted. But most people don't know that the back end of a car dealership is where the profits are made. At my dealership we're experiencing a fixed operations boom. While sales is in the red like always. If you can't by a new car you have to fix your old one. The same will be true for VW. Everyone is acting like this is the end for VW. It's far from it. This will hurt them but it won't kill them. They're going to have to fix the cars via recalls. This will most likely consist of updated exhaust systems components. If the current catalytic converters are in need of replacement. What happens to platinum if VW has to recall all of them? Recycling the old ones won't have an effect on the market until later down the road. The short could be very good position to have.

  11. Dear Sirs at Illuminati Silver.
    1. We know there is a strong correlation in price betw silver and gold.
    2. I would like to ask if there is a strong correlation betw Platinum and Gold? If Platinum drops, does it mean Gold price should drop also? and vice versa. Do you know what is the % of correlation? (i understand that silver/gold is about 80% correlation. pls correct me if i am wrong.)

    thank you again for the educational videos

  12. Just the thing to put the nail in the coffin on Glencore's credit downgrade. Convenient that such a scandle breaks days after Goldman outlines what it would take for Glencore to go belly up.

  13. OK, so you did mention platinum is being used in catalytic converters, but you did not mention that a catalytic converter is the exact thing being used to control emissions. So while it is possible that the population would be pushed off the diesel engines by governments, it is also possible that the population would be forced to pay more for better catalytic converters, which would use up even more platinum. I could be wrong, but the second outcome seems more probable to me.

  14. +Illuminati Silver Based on the Platnium price now, do you see Platnium defying history and staying well below the Gold to Platnium ratio due to low future demand? The current ratio is about at an all time low and Platinum's price continues to get destroyed. Palladium only costs $15 less at this point.

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