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 Replies: 9 / Views: 1,008 |
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Pillar of the Community
United States
560 Posts |
I've noticed that platinum has continued to decline while gold and silver have rebounded after the announcement of all the bank failures. Do you think that platinum is as good as gold and silver for investment?
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Bedrock of the Community
United States
20753 Posts |
Of course it's a great investment. Especially if you purchase stocks in company's that make razor blades.  I've always wonder about all the Platinum used in razor blades and then thrown into the garbage. Must be tons of Platinum in the garbage dumps.  |
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Rest in Peace
United States
9104 Posts |
Any time platinum drop lower than gold, sell 100 ounces of gold and buy 100 ounces of platinum. When the market corrects, reverse your transactions.
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Pillar of the Community
 United States
560 Posts |
Gold is at $900 an ounce and platinum is $1044 an ounce, just shy of the lowest it has been in a over a year! Platinum usually sells for more than twice the price of gold! With the market loosing a trillion dollars today and more likely to follow in the coming days, I can't believe more people aren't talking about this.
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Pillar of the Community
United States
6381 Posts |
I would agree, platinum is relatively low right now. Is it the right time to buy? If the money supply remains tight and credit is hard to come by the demand may remain low. If so, the price might go even lower. Palladium is also very low, just over $200/oz last time I checked. That could also be a relative bargain. I've always wanted to buy some Iridium but haven't found any metals dealers that have, say, 1 ounce ingots for sale. If I could find it I would expect its price to be down as well. Anyone know a likely supplier?  |
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Pillar of the Community
Australia
3831 Posts |
Guys, always look at where the supply and demand are at. Platinum and palladium are heavily used for catalysts. Fuel prices went too high up, automobile manufacturers were forced to pay high price and pass the high costs to buyers. That doesn't work out as fuel prices are so high, buyers were turned off buying new cars except hybrids but nevertheless, a sharp drop of demand of new cars.
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Pillar of the Community
United States
3294 Posts |
Of course, on the supply side, platinum is far rarer. The total world estimate for the amount of gold would fill 3 olympic sized swimming pools while platinum would be 1 pool ankle deep.
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Pillar of the Community
United States
1130 Posts |
I have over 4 oz of Platinum bought at about 1800  I was planning to sell them at about 2400 but it never happened. Here are my 3 reasons why: 1) Gas prices went up, new car sales went down. There goes the biggest user of platinum... 2) The power supply issue in the South African mines weren't bad enough to disrupt production. 3) The Asian market didn't materialize. They stuck with traditional gold instead of switching to platinum. My outlook is for platinum to slowly climb back up once oil (and gasoline prices) goes back down significantly and the economy starts recovering. Consumers will be able to buy new cars again. |
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Pillar of the Community
Australia
3831 Posts |
4) New source of platinum supply found in Zimbabwe with a high potential of adding additional 1+ million ounces of platinum annually, which about 15% (I believe) of current GLOBAL supply. If the current Zimbabwean politics are to end right now, production will dramatically increase from that country.
My partial coin collection http://www.omnicoin.com/collection/gxseriesMy numismatics articles and collection: http://www.gxseries.com/numis/numis_index.htmRegularly updated at least once a month. |
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Pillar of the Community
United States
560 Posts |
Thanks for the responses. gxseries, I always value your take on the precious metals market. I bought my first platinum coin, a tenth ounce eagle for $118.60 and it is up more than 14% in two days at $135.
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Replies: 9 / Views: 1,008 |
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Posted 09/29/2008 10:56 pm
