Platinum price decline: to invest now or not?

TreasureHunter

TreasureHunter

Well-Known Member
Hi,

Platinum has fallen from the 1300-1800 USD range, where it oscillated in 2010-2014.
It even hit 2200 USD back in 2008.

So at just above 800 $ an ounce, it seems relatively cheap.

Is this a good buying opportunity for a 10-20 year investment? Would you advise to buy in?

Could platinum be a good investment for the sake of speculation?

I'm thinking of later gains, not necessarily for a "safe haven" investment, for which gold is probably a lot more stable.

It hasn't been so low since 2004, and 2009 if I'm not misaken - whn its price played in the 800's for a brief period. Though, it's been in the 500-600 $ range in the early 2000's.

If I look at the past 5-10 years, it's certainly a downtrend, but the 20 year chart shows terrible volatility. It's up-n-down almost like silver. Not sure how this metal behaves, as I've never owned, not do I know what to expect.

Could platinum climb much higher?

Russian mines, South African mines were affected in recent years be various crises (sanctions on Russia, protests at South African mines) etc., but not sure about why prices still dipped, since demand should have kept up. (And driven the prices upwards, potentially...).
 
it's just a rebound. the trend is down will continue for a while. just like silver...
wish there a change in trend but not yet
 
The future price of platinum and palladium will be largely dependant on the strength or weakness of the automobile industries,
as they are both more industrial metals than precious metals.
So, if you think that the auto industry will continue to grow and prosper in the future then, by all means, invest in platinum.
Personally, I myself think that we are headed for a 30-year depression and economic collapse from 2020 to 2050 which will
decimate most industries particularly the new car manufacturing one.
That is why I have sold all my larger platinum and palladium coins and now and only keep some numismatic 1/10 and 1/20 oz
coins which sell quite well on eBay at a high premium.
In the bleak future, I only see gold as the star performer, with silver a distant second.
The fact that worlds central banks are purchasing large amounts of gold and not the other precious metals also should be
a good indicator where the future action in the precious metals will be.
 
prospect said:
In the bleak future, I only see gold as the star performer, with silver a distant second.
The fact that worlds central banks are purchasing large amounts of gold and not the other precious metals also should be
a good indicator where the future action in the precious metals will be.
Click to expand...

My thoughts as well. I'm pretty much only buying gold now.
 
TreasureHunter said:
Russian mines, South African mines were affected in recent years be various crises (sanctions on Russia, protests at South African mines) etc., but not sure about why prices still dipped, since demand should have kept up. (And driven the prices upwards, potentially...).
Click to expand...

I’m keen on pt so I’ve been reading up on platinum and palladium and it appears that even though SA miners are losing money on pt, they still mine for it as a by product for the much more profitable pd. As long as pd prices remain high, the supply side will not fall even if prices fall further.

I only got a 1 oz Griffin pt, it’s the most beautiful coin in my collection, beats even the 1 oz gold QBs, which btw are very pretty to begin with. Before I got this, I thought that pt is just like silver but I’m wrong, it’s like comparing plastic crystal with diamonds. I can’t say for industrial use but pt as jewellery has a market.
 
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As was mentioned, gold is probably the buy... superior liquidity and potential. I'm basically only buying gold... token amounts of silver. Fwiw, I have also been out of logical physical space for silver for years now.

Platinum has a small market (lack of liquidity), so it never made sense to me. That means that not only do you have to try to time the buy... you also might not be able to sell when you want (and for what you want). At least silver and gold have constant buyers.

When it comes to stocks, bonds, commodity, house, whatever... be careful with the "it has gone so low, it can't go lower" thinking (and the opposite as well). If it's not at zero, it can go lower. If it's not at infinity, it can go higher. GL
 
i treated Pt the same way as Pd
Pd cost twice as much in spread, but bargain price is still up ahead, there is no bottom yet...unlike silver/gold
 
alor said:
i treated Pt the same way as Pd
Pd cost twice as much in spread, but bargain price is still up ahead, there is no bottom yet...unlike silver/gold
Click to expand...

I treat pt the same way as i treat ag, metals that costs more to mine than to sell, but are nonetheless still mined as a byproduct of profitable base metals - pd for the case of pt. It will be interesting to see what will happen to pd as the trade war progresses...
 
TreasureHunter said:
Hi,

Platinum has fallen from the 1300-1800 USD range, where it oscillated in 2010-2014.
It even hit 2200 USD back in 2008.

So at just above 800 $ an ounce, it seems relatively cheap.

Is this a good buying opportunity for a 10-20 year investment? Would you advise to buy in?
Click to expand...

The price has exploded since your post. As always, pt don't stay at the $800 level for too long.

Hopefully, you have got what you wanted. ;)
 
companies would be out of business if technological leap is allowed to happen so fast
it double every year, and the speed to just participate in the next generation technology allow the left behind people to catch up on the cheap
 
Consider PT and PD as expensive base metal with little future.
As for electric cars it’s a stepping stone to Hydrogen cars.
Hydrogen cars will take the win. Much like very few gas stations had LPG pump in 1980 within a decade all stations will have hydrogen as main fuel.

Cheap, clean and fast refuel.
 
if Hydrogen is needed, then Palladium would be is use and Uranium for the nuclear reactors
if the waste is water vapor, then not sure what can be done with Pt
 
alor said:
if Hydrogen is needed, then Palladium would be is use and Uranium for the nuclear reactors
if the waste is water vapor, then not sure what can be done with Pt
Click to expand...

Yes pd can also be used for hydrogen instead of pt. There had been some preliminary research on using pd for hydrogen vehicles when pd was $200-$300/oz.

In my opinion, no one really knows the future. Pt can be $400/oz as you say or $4000/oz in 10 years.

https://newatlas.com/alakai-skai-hydrogen-vtol-air-taxi/59911/
 
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it was never easy to sell Pt when it was $2000, it is not going to be easy buying them at $400 either
when gold was that high, i could not afford that gold buffalo, so i bought a gilded metal buffalo instead... lucky only cost $20...otherwise would have lost over $200 easy.. so it only cost 10% of that potential lost
never know the future, better is a mystery
 
alor said:
it was never easy to sell Pt when it was $2000, it is not going to be easy buying them at $400 either
when gold was that high, i could not afford that gold buffalo, so i bought a gilded metal buffalo instead... lucky only cost $20...otherwise would have lost over $200 easy.. so it only cost 10% of that potential lost
never know the future, better is a mystery
Click to expand...

The first gold coin I bought didn’t cost me a lot more than $200. That was like 20 years ago. Gold is really cheap in those days but few people buy gold then - it wasn’t even considered an investment at that time, more like a novelty with the GST. The UOB teller gave me a funny look when I bought the coin. When price is cheap, demand is low. This is what is happening to silver and pt.
 
it was becos gold had been is a 20 years bear market since 1980 $850 usd when treasury interest top at 20%
then gold bottom around 2001 $260 usd

hope this good thing can last a bit longer for silver and (Pt in a couple of more years)
 
alor said:
hope this good thing can last a bit longer for silver and (Pt in a couple of more years)
Click to expand...

I hope too as qb series still not completed. But I don’t think that silver and pt can remain low if gold goes parabolic. People will start to notice silver, and the silver market is only couple billions dolllars worth of inventory unlike the trillion dollar gold market.
 
sgbuyer said:
The price has exploded since your post. As always, pt don't stay at the $800 level for too long.

Hopefully, you have got what you wanted. ;)
Click to expand...

Didn't get any. The price has dipped significantly after your post :)

But it seems like a 3rd-4th option to consider when investing long term.
 
TreasureHunter said:
Didn't get any. The price has dipped significantly after your post :)

But it seems like a 3rd-4th option to consider when investing long term.
Click to expand...

I’m buying just buying the qb collection, not going for bullion or stacking like I do for silver or gold. It’s quite a challenge to get good coins regardless of spot.
 
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