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Will Platinum Ever Come Back Above Gold?

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poboxw's Avatar
Canada
1502 Posts
 Posted 11/15/2011  01:50 am  Show Profile   Bookmark this reply Add poboxw to your friends list Get a Link to this Reply
Thanks for the info ed. So I suppose the price of Pt is driven mainly by its true rarity (compared to silver and gold) and industrial demand more so than it's "intrinsic" value
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Ed_B's Avatar
United States
4008 Posts
 Posted 11/15/2011  7:07 pm  Show Profile   Bookmark this reply Add Ed_B to your friends list Get a Link to this Reply
The info in Wikipedia is from 2006. As of that date, about 80% of the platinum uses are industrial and 20% were for jewelry. No mention was made of coins. In any case, platinum use is primarily industrial so as industry slows its production, its consumption of platinum should also slow.

We have seen Pt prices drop like this before. On average, there has been about a 60% rise in the price of Pt in the 2 years following its price drop to below that of gold. The recent drop in Pt prices to below those of gold could very well show significant price gains over the next year or two. Anyone who watched the gold / silver ratio and who uses that to trade in and out of gold and silver in such a way as to maximize their total PM ounces should really be selling Au now and buying Pt. If the typical pattern occurs in this case, they will be able to sell the Pt in a couple of years and buy Au with their profits.
If I had any Au, I would be doing that now.
Valued Member
JSH's Avatar
United States
410 Posts
 Posted 11/17/2011  11:47 pm  Show Profile   Bookmark this reply Add JSH to your friends list Get a Link to this Reply

Quote:
The only thing I can see causing a serious problem is if a substantial amount of vehicle production switched to electric, and frankly, I don't see that happening any time soon.


It is important to remember that the US market is no longer the #1 automobile market in the world. China captured the #1 spot in 2009 and hasn't looked back. The Chinese market will be driving more and more of the development focus in the years ahead just as they will be driving the oil markets.


Quote:
So I suppose the price of Pt is driven mainly by its true rarity (compared to silver and gold) and industrial demand more so than it's "intrinsic" value

The same could be said of silver until 18 months ago. Until the summer of 2010 industrial demand was the dominate factor the determined the price of silver.
Rest in Peace
biggfredd's Avatar
United States
9104 Posts
 Posted 11/25/2011  08:17 am  Show Profile   Bookmark this reply Add biggfredd to your friends list Get a Link to this Reply
There is no doubt in my mind that Pt will be higher than gold, and there's even a simple way to make money on this.

Where's a good site to see what LEAPS are available, either in or out of the money?
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