Platinum Selling For Less Than Gold

Plat throughout most of recent history has indeed been worth more than gold, but the lines crossed for a short time recently, then again and it still has not un-crossed, very interesting idea you present, as I have not gave platinum much thought as of late....

To me, when I hunt for platinum on ebay (again every PM is higher on ebay, just is what it is), but when I do hunt for the Liberty 1/10 an oz. platinum, they still seem to be ridiculously high, as if the current market price has zero interest or effect on those who sell it. They still know it is way sought after, so many will not budge on their price. Case in point below, and this is the best priced one I found on a brief search....

http://www.ebay.com/itm/1997-W-Amer...em41600da63e

Car demand has everything to do with Platinum demand and pricing, and I also know China is such a rapidly growing pop and economy, that I heard 10,000 new cars hit the streets in China every day. Those mind boggling numbers, combined with oil and combustion gasoline powered engines not looking as if they are going anywhere anytime soon, makes me think Platinum will start back up in the new year. So if you can find a price that reflects the current market price, I say go for it....

I always think of a stat BiggFredd tossed out once, via all the mined platinum of the world fitting into a racquet ball court. That fact alone, makes me think its rarity will always be high in coin form. It is not sought after as a substitute for a dying currency as much as gold and silver is, but it has it place among collectors, and I would love to get a bunch of platinum. For one I never have, and I always enjoy testing the market for new things to sell. You have no idea what anything is really worth, until you try an sell it and see how many people want it, go after it, add it to watch lists, etc. IMO....

The only platinum I have is a few rings that I doubt even come to a oz.

However because the different is over $200 from gold I personally feel moving some gold into platinum could be a very favorable trade. Platinum Poladium and Rodium are really still under the radar and with Poladium and Rodium they still have a lot of growth in their uses becomming 1. more widely respected, and 2. new uses being discovered.

The thing is though sense I feel silver is so massively undervalued I still must advocate it as the highest growth potential in the next 3-20 years.

It is unusual for Pt to be priced less than Au. IIRC, this has only happened about 4-5 times in the past 40 or so years. In each of the previous cases, when there was a Pt/Au price inversion, the price of Pt went up an average of 62% in the following 2 years. No way to know if that will occur again but history shows that it is possible and perhaps even likely.

Pt prices continue to be hammered, though. It's currently just under $1500 an oz while Au is around $1710.

One thing that would push Pt prices higher would be reduced production. If they had some equipment or flooding problems in the Pt mines of Russia or South Africa, that would put a lot of upward pressure on Pt prices. Failing that, then rising demand is about all that is left to support the price.

My thought is that Pt is a real buy right now but there is no way to know if it will be an even better buy in a few weeks or months. Perhaps this is the time to start slowly accumulating a small Pt hoard? In 2-3 years, it is likely that the Pt price will be quite a bit higher than it is today.

Sounds like you may have a lot of faith on the strength of the US dollar there satxwd. Care to share the secret?

I just think the high price of gold right now is based on speculation and fear. If you bought in when gold was $270 an oz like I did then the time to sell is now. America has always come out on top after hardships and our current predicament isn't even close to the hardest challenges America has faced. Sure, gold will stay high for a year or so more but that's it. Then back down to $900 it will go.

There has always been an element of that in PMs. When people become fearful of the economic situation they do run towards that which seems most valuable and stable. In many ways, that would be the PMs. Note that the recent leg up in gold prices is not a bubble. If a bubble were to form in gold, we would definitely be seeing high mining share prices and much wider gold ownership. We are not seeing either of these, ergo, no bubble. Not that there has to be a bubble for any commodity to me mis-priced but there usually is when it goes on as long as the recent rise in PM prices has.



How about when it topped $1900 an oz. a couple of months ago?



Actually, it could be argued that we are now facing things that we have never faced before, so using our past performance in the face of adversity may or may not be relevant.



Be sure to let us all know when it is time to short gold so we can profit from this huge decline. That will be some VERY useful info.

Sounds like more fear and speculation talk. Then again right wing and left wing rhetoric always speak from fear. I agree with neither. People are free to think, buy, and believe what they wish. Those who buy gold and silver now would have never bought it ten or fifteen years ago. I remember well when those same people who buy bullion today told everyone to invest in the stock market just before the bubble burst. Bullion will have its bubble burst too. It's just a question of time. And the suggestion that America's problems today are anything close to what we've been through in the past is ridiculous.
Enjoy buying over priced gold and silver bullion. Meanwhile, true coin collectors are picking up great numismatic coins at bargain prices. Why? Because even dealers have been distracted by the bullion prices. They have taken their eye off the ball and collectors are scoring big time because of it. Being a true coin collector, I'm more than happy with that!

You might consider that those of us who have invested in the stock market and made a lot of money there are now seeking to diversify into alternative investments other than stocks. Personally, I never told anyone to invest in any particular asset. My own actions speak for me for the most part and as I was getting rich those who know me personally emulated what I was doing and they got rich too. That was their choice, though. Had they chosen otherwise, that would have been fine with me too.

As to the stock market burst, those of us who invested in it for many years and knew what we were doing lost very little money in 2001 or in 2008. It is the people who do not know what they are doing who get into the most trouble when investing and their choice of investment vehicle really doesn't matter all that much.