Why Rick Rule Bought $280M of Platinum and Palladium

``We think a move in the platinum price from $1,650 to $2,700--3,000 would allow the South African platinum industry to earn its cost of capital, provided the increase in the social take was moderated. The difficulty is that the demand for platinum is so high that the price will overshoot in the near term. Making the $6--8B in capital investments to maintain production in South Africa would take six years. These long lead times in a capital-intensive business underscore the likelihood of extraordinary price moves.''