US/BRICS financial hostilities and platinum groups?

Discussion in 'Platinum' started by Rinchin, Aug 27, 2015.

  1. Rinchin

    Rinchin New Member

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    Just wanted to know some peoples thoughts on what would be the result for these metals in the case of BRICS currency challenging US or a crash in confidence in the dollar, or the bond market, or whatever they've got left to crash.


    I was thinking since massive majority of platinum group metals are in Russia and South Africa could that mean we** would draw big shortages for industry and local markets in the case of financial or military hostilities?


    ** edit - by we I mean the former sovereign states of the western economy.
     
  2. alor

    alor Well-Known Member Silver Stacker

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    with the metals backing the BRICS they are untouchable.

    the Russian sanction can never work, as China would easily buy stuff from Russia and pay with their usd, what if China ask to be paid with RMB? sure the US can't pay. or there will be no goods to deliver to Walmart stores.

    the moment the bank is operational, the USD holdings as reserves would fall below 50%, that would slowly decline to 20-30% over the years.
     
  3. SmartyFarty

    SmartyFarty Member

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    Agree.

    Selling down cash reserves to stimulate domestic economies.

    PMs should benefit from devaluing of currency
     
  4. hiho

    hiho Active Member Silver Stacker

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  5. rwmmint

    rwmmint New Member

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    Supply and Demand is usually going to be what drives the value of a metal (or anything else for that matter). The less abundant and more useful in emerging industries and products, the greater the opportunity for increasing value. History and tradition of course also play a significant role in the more commonly traded metals. There are opportunities to buy the traditional metals and the more atypical rare earth and platinum group metals at opportunistic prices.
     

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