Platinum Price>Gold Price?

Discussion in 'Platinum' started by 940palmtx, Sep 15, 2011.

  1. 940palmtx

    940palmtx New Member

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    Why does platinum sell for more than gold even when gold spot is higher. Seems ant-intuitive. I know platinum is rarer, yet still price is price...right? Obviously wrong!
     
  2. rbaggio

    rbaggio Active Member Silver Stacker

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    This will get you started.

    http://www.gold-eagle.com/analysis/platinum.html

    "Whereas during normal periods of rising precious metals prices, platinum enjoys a few dollars premium over gold, the platinum/gold spread widens considerably when the group is in a strong bull posture. In fact the platinum/gold spread has reached more than $200 occasionally during the last two decades."

    I like this bit:

    "All the platinum ever mined throughout history would fill a basement of less than 25 cubic feet"
    (although the page is a few years old now)
     
  3. 940palmtx

    940palmtx New Member

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    Thanks for the reply, there were a couple things I learned. yet still I wonder. Vintage Partridge Family lunch boxes are rarer than platinum, but they aren't worth more by weight. If it was demand, then it would be priced higher. I still don't fully understand. I'm not saying platinum is over-priced, just maybe gold is under priced because of it's volatility. Rareness aside, the differential in price goes against every fundamental economic law I'm aware of. Rareness only counts when demand is high and if demand were high enough it'd be priced above gold.
     
  4. BlackSheep

    BlackSheep Well-Known Member Silver Stacker

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  5. Ouch

    Ouch Active Member

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    On a purely aesthetics level, I like platinum most of all, more than gold or silver. I'm also comfortable buying Pt whenever it is below Au and that helps too.
     
  6. THUCYDIDES79

    THUCYDIDES79 New Member Silver Stacker

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    Platinum is the king of metals.
    i also find it strange that its a bit cheaper than gold ( spot-wise ) - however when it comes to physical Pt is a bit dearer than gold.
    It is rarer and denser than gold

    gold is around 19.5 and platinum is 22.5 ( rel. to water )
     
  7. 940palmtx

    940palmtx New Member

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    Man, Pt is waaay down. If some of these d%&n retailers would price their eagles, maples and bars to reflect the drop I'd buy some, even though I was looking to sell some gold for needed cash LOL
     
  8. Lord Dragon

    Lord Dragon Member

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    Ive honestly never given a thought for platinum. Perhaps I should if its cheaper than gold. But from what I know any industrial uses for platinum can be replaced with paladium, is this right? Thoughts?

    Also what are the best way to buy small amounts of platinum? Perth mint dont appear to sell any platinum equivilent of kooks.

    *edit* Oh yes they do, the platypus. But only in 1oz coins. I was hoping for something more like 1/4 or 1/2 oz.
     
  9. 940palmtx

    940palmtx New Member

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    I'm not buying platinum anymore because it's below Ag spot, yet still more expensive. I bought some a while back when it was more than Ag. I think bars are the way to go, but some people swear by Pt eagles and maples or I guess koalas?
     
  10. BlackSheep

    BlackSheep Well-Known Member Silver Stacker

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  11. Sargeant Argent

    Sargeant Argent New Member

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    You should've bucked up and got the platypus' instead of the koalas. If you're gonna hold for decades, it may as well look good! ;) totally jealous by the way!
     
  12. BlackSheep

    BlackSheep Well-Known Member Silver Stacker

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  13. 940palmtx

    940palmtx New Member

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    Ok now I see why...Gold's volatility! Unlike silver, Pt doesn't follow gold. Last night Pt went up while Au went down, to jump 20
    $USD above. I also found that it's so true, the bit about trying to time markets. I always look for it to go lower before buying and it always seems to jump back up before I do. Oh well...such is life
     
  14. BlackSheep

    BlackSheep Well-Known Member Silver Stacker

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