Platinum as an investment

[JBstacker3181]

So I manly stack silver and a little bit of gold but I have been looking in to platinum as of late and was just wanting some advice and opinions. Thanks!

[Pete]

I jumped into platinum and bought some one ounce Queen's Beasts.
Platinum used to be more expensive than gold so whilst it is being downgraded like silver, I thought there was little to loose.
The problem is once again UK VAT of 20% and platinum does seem to have a higher premium than gold aside from the VAT.
I shopped around and ended up buying from GS.be saving a big amount compared to the best prices from UK sources.
No-one knows the longer term price of PMs so it is a risk perhaps compared to the more tradeable gold but I just fancied holding some Pt as different.

Oops - just noticed you are in the USA so what I've said is irrelevant to you but might be of interest to others

[flim]

you must have notice, palladium is moving up and will soon over run gold, while platinum is falling like a rock

[Fastnick]

Just to throw my two ha'pence worth in, if I may......

I've been fascinated by the idea of having a small amount of platinum as part of my modest PM portfolio, but have so far held off from buying any; instead, I've been watching its price movements for almost 12 months now and have come to the conclusion that if you're after a rollercoaster investment ride then platinum will definitely fit the bill.

I regret hugely not buying a 1oz platinum Britannia from GS.be back in the late summer when the price went as low as €722, only to see it move to above €800 in the space of just over a month a so shortly thereafter.

As @flimsays, its price seems to be on the way down again now (€762 this afternoon) and so I'm keeping a very close eye on it. My thoughts are that I'll be buying if the price through GS.be drops below €740 for a 1oz Britannia.

But hey! What do I know!

[Roy]

Platinum investors: Where will you sell your goods?

https://www.hattongardenmetals.com/sell-scrap-gold.aspx

 

[Foolssilver]

I’ve bought a small amount via royal mint signature. Avoids the huge premiums and means it can be sold back. 

 

Negatives would be you dont physically own them and the bet is on spot price only only rather than the value of the coins rising

[Pete]

3 hours ago, flim said:

you must have notice, palladium is moving up and will soon over run gold, while platinum is falling like a rock

Yes Platinum to gold ratio - down 17% 3 year / down 39% 5 year
Platinum to silver ratio - down 4% 3 year / down 20% 5 year
Seems a good time to buy Platinum to me

 

[Roy]

CD players are extremely cheap too 😁

[zeusss4]

I had a 1/10 platinum Britannia on eBay for, I think, around 5 days. 

I had 4 page views on this before it sold on Facebook. 

[flim]

if you can still sell it, it is not the bottom yet

when the decline is so slowly, just the same experience we have in silver... bottom is not near

it is slow and sickening to wait too... until one day ..no body want to touch them...that's the bottom

anytime is a good time to buy, profitable time is good to buy near bottom...when nobody wants it and on sale 

what is going to happen in platinum has happened to palladium in the past

as an investment, timing can be better

as a portfolio diversification...a complete QB set seems a very attractive alternative in platinum sphere 

 

[JBstacker3181]

I just want to say thank you to everyone for your help and opinions on this. It was very informative and has helped me a lot. I think I'm going to hold off for now.

[JBstacker3181]

18 hours ago, flim said:

you must have notice, palladium is moving up and will soon over run gold, while platinum is falling like a rock

I have noticed the difference can you tell me any more about it please??

[Stu]

17 minutes ago, JBstacker3181 said:

I have noticed the difference can you tell me any more about it please??

From what I hear  platinum is used in diesel car catalytic converters which are on the decline, conversely palladium is used in petrol(gas) converters which have increased sales considerably. I wished I had purchased an ounce or two a few years ago. I did get a 1/10 Brit recently which happy with though.

[flim]

43 minutes ago, JBstacker3181 said:

I have noticed the difference can you tell me any more about it please??

Pd is in a bull market since 2009 (gas car production in China growing)

Pt peak out in Mar 2008 at $2300 then collapsed to $760 in Oct 2008 the rest have been just technical rebound (counter trend) of the major bear market (diesel car factory closing down in US)

if you buy a set of Pt coins for investment, when the time to sell it, its not a small amount, so it will take some time to get the better price

instead of Pt  being used in cars, it is going into coins, many coins will be minted and its going to put pressure on the future premiums, which may end up just a commodity coins (bullion) that track spot price

when bought at the right time and the right product, there would be money to be made

[JBstacker3181]

8 minutes ago, flim said:

Pd is in a bull market since 2009 (gas car production in China growing)

Pt peak out in Mar 2008 at $2300 then collapsed to $760 in Oct 2008 the rest have been just technical rebound (counter trend) of the major bear market (diesel car factory closing down in US)

if you buy a set of Pt coins for investment, when the time to sell it, its not a small amount, so it will take some time to get the better price

instead of Pt  being used in cars, it is going into coins, many coins will be minted and its going to put pressure on the future premiums, which may end up just a commodity coins (bullion) that track spot price

when bought at the right time and the right product, there would be money to be made

Ok I see what you saying I did know about the car thing. Most people think its platinum in them they dont know what pt is... to be honest it was new info to me just a week ago. But thanks for taking the time to write me! 😀👍😀👍

[vand]

 

full disclosure: I current stacked about 80% platinum, 20% silver. I expect handsome outperformance over a 10 year timeframe.

[Pete]

Another use for platinum is storage of hydrogen.
Once we see more hydrogen powered cars & buses ( only emission is water vapour so 100% clean ) when the safety gurus do their stuff and there are more refuelling stations I wonder if Pt will be in more demand.

[JBstacker3181]

16 minutes ago, Pete said:

Another use for platinum is storage of hydrogen.
Once we see more hydrogen powered cars & buses ( only emission is water vapour so 100% clean ) when the safety gurus do their stuff and there are more refuelling stations I wonder if Pt will be in more demand.

That is a great point and I would say absolutely. The world needs some change in that aspect. I want my kids kids kids to live in a beautiful world and this beautiful world could definitely use some helping out. Just saying.

[Coolsmp]

Platinum is nice but not sure its worth spending loads on. I have a 1/10 oz Britannia might pick up a few more over the years to aim for a full ounce. But probably will only ever get fractionals so they can easily be sold if need be.

[Uksilverstackers]

21 hours ago, Stu said:

From what I hear  platinum is used in diesel car catalytic converters which are on the decline, conversely palladium is used in petrol(gas) converters which have increased sales considerably. I wished I had purchased an ounce or two a few years ago. I did get a 1/10 Brit recently which happy with though.

I think Platinum would be the preferred option for catalytic convertors for better air quality  and can be used in both Petrol and Diesel, but as Palladium was cheaper, it was used but can only be for Petrol. I guess if the large difference in price remains car manufacturers may review its use.

But Platinum is much rarer than Palladium though and is certainly not abundant.

As for coins, using Platinum is not easy to work. It is extremely hard to press and the dies  need replacing after a very limited number of strikes especially as the number of strikes for a platinum coin is much higher than gold/silver.

[JBstacker3181]

16 hours ago, Uksilverstackers said:

I think Platinum would be the preferred option for catalytic convertors for better air quality  and can be used in both Petrol and Diesel, but as Palladium was cheaper, it was used but can only be for Petrol. I guess if the large difference in price remains car manufacturers may review its use.

But Platinum is much rarer than Palladium though and is certainly not abundant.

As for coins, using Platinum is not easy to work. It is extremely hard to press and the dies  need replacing after a very limited number of strikes especially as the number of strikes for a platinum coin is much higher than gold/silver.

Wow I really didn't know that! Thanks I really enjoyed learning about that!!!👍👍

[Uksilverstackers]

Some More info...

The History of Platinum

[JBstacker3181]

18 hours ago, Uksilverstackers said:

Some More info...

The History of Platinum

Wow that was really informative. I really really enjoyed it. Do they have one for each pm???

[HawkHybrid]

21 hours ago, Uksilverstackers said:

Some More info...

The History of Platinum

 

I don't like how positive platinum biased the article is.

if there is as much platinum as there is gold and we currently

mine only 1/10th in platinum as we do in gold, what happens

when we add the remaining 9/10th potential production?

 

HH

[Uksilverstackers]

I dont know about mining, but I guess that the other 9/10's potential are just too expensive to get out of the ground at the present price especially with supply/demand.

Also whilst there may be as much Pt as Au, how much rock needs to be shifted to get at it ie Grams per Tonne?

There are a lot of commodities still in the ground, getting it out profitably will dictate if it stays in the ground or not.