31October

Are Safe Haven Investments Really Immune From Current Crisis?

I quit insisting that the US financial debt system could collapse and decided that the international currency and commodity flows must be balancing the sytems out. So I bought PTM, PAL, and SWC. Then the house of cards did erode, only to be supported by $750B, [not including Iceland, France, Korea, or Belgium] which will later erode the western economies.

De facto deflation will arise, despite inflationary pressure from devalued currencies and overprinted fiat money. Why? Banks will be gun-shy and leave it in the FED to collect interest. US homeowners can no longer buy Wii's and cars on HELOC cards, so demand drops further, then the sheeple hear on Entertainment Tonight (sorry, the nightly news) that it's time to hoard cash and not buy.

PGM metals in items such as catalytic converters will have less demand [query-are car sales up or down?]. Electronic toys will see less demand: Less dollars flowing to China will cause local dollar buildup and thus inflation, causing a lower point on the supply/demand curve; i.e. production falls. As demand for PGM metals falls, the market price falls below the cost of production. But industries never cut production until AFTER prices fall, so there is an upcoming drop in demand, followed by an oversupply. Therefore, PGM metals & miners will get a double-hit.

To sum, PGM miners are screwed, as is my portfolio.
I expect Cramer to be screaming !BUYBUYBUY! as he shorts like hell.
The only thing that could save PGM prices would be war.

Now... Which candidate owns more metals?