Time to load up on Platinum Eagles??
MilesWaits
Posts: 5,310 ✭✭✭✭✭
Or Beasts, Or Maples, or bars, or.....?
And has anyone seen a Platinum Beast for the Dragon? Spot is near $800. Premium under 10%, I see.
A long read from Provident, today:
Over the years, we’ve seen countless cycles in bullion prices. This includes quiet times like today and frenzied rallies in years past. Not only have we witnessed many enormous swings, but we’ve also investigated the “why” behind each fluctuation. By doing so, we’ve been able to alert clients regarding important opportunities. While no one has a crystal ball as to where prices are headed, we can identify factors that move markets. Certain triggers have the potential to drastically influence prices – and we’re on the lookout for them.
That’s why we’re getting in touch today. As a leading precious metals dealer, we’re constantly monitoring spot prices. It’s impossible to go more than a minute or two without seeing where gold, silver, and platinum are trading. Every time we look at our screens, one number stands out: the price of platinum. For many, many years – and most of recorded history – platinum has been more valuable than gold. Yet, remarkably, that is not the case today. The spot price of platinum is under $800 as we write this, which makes it nearly $500 lower than gold!
Why Platinum?
There are many reasons why platinum typically commands a higher price than gold. First and foremost, it’s significantly scarcer. In the bullion marketplace, many large wholesalers carry thousands of ounces of gold. Large quantities of the yellow metal can be sourced with relative ease. On the platinum side, however, scrounging together a few hundred ounces can be a challenge! We would venture to say that platinum is 20-50x rarer in the bullion marketplace compared to gold.
In addition, platinum has some extraordinary properties that make it perfect for industrial applications. It is one of the heaviest, densest, and most rigid elements on planet Earth. It has a shockingly high melting point of 3215 degrees and is the least reactive metal known to man. One of its most attractive features is its ability to serve as a catalyst. That is, platinum can speed up a chemical reaction without physically changing in the process. Thanks to these important qualities, platinum serves a crucial role in the medical, industrial, and jewelry worlds.
Platinum is especially critical to the automotive industry. It’s a vital component of the catalytic converter, which reduces the toxicity of car exhaust. Virtually every car made since the 1970s contains some amount of platinum. Jewelers also enjoy working with platinum due to its durability and malleability. It’s the ideal metal for pieces that will be worn every day, as no metal is better equipped to withstand years of constant use. Platinum is also used in essential medical devices such as pacemakers. As an inert metal, it will not corrode or deteriorate.
The combination of scarcity and multifaceted demand has bolstered platinum prices for decades. Ever since its discovery in 1735, this coveted metal has typically commanded a higher price than gold. In looking at 50+ years of price history, we found that platinum traded for more than gold 80% of the time. Furthermore, the difference in value between gold and platinum is often dramatic. At one point in the last decade, platinum was worth more than double the price of gold!
So What?
Given all this, we at Provident believe today’s low platinum prices represent an unusual opportunity. We’re accustomed to seeing platinum sell for a 50% premium relative to gold. Nowadays, the exact opposite is true! Today’s gold-to-platinum ratio is a shocking 1.6; it hasn’t been anywhere near this since the 1970s. One other number that jumps out: the spot price of platinum. Today’s level of approximately $790-$795 is a far cry from the 2008 peak of $2200! For added context, consider that platinum spot was at $800 in 2003 when gold was just $400 per oz!
HISTORICAL PLATINUM SPOT PRICE CHART
Why is platinum so reasonable right now? Just as the auto industry has helped bolster platinum over the years, it’s also the culprit for its recent woes. Buzz about electric vehicles has resulted in a knee jerk reaction. While it’s true that more electric cars are being made, the vast majority of vehicles are still made with petrol engines containing catalytic converters. Furthermore, as countries like China and India start manufacturing more cars, they will be primarily gas-powered. Many analysts feel that the price of platinum has been unfairly punished in recent years; current pricing does not reflect true demand for this rare metal.
Comments
Maybe. Maybe not.
While platinum ...IS... significantly scarcer, so are places that consider it money.
If you're "stacking" it makes sense to stick with LIQUIDITY.
Gold is in demand everywhere.
Nothing else is.
Honestly, it depends on what you're going to do with it. Generally, the only people that make out with PMs are people that trade them. A stack of Eagles doesn't compound over time. But, if you're going to trade them, you might as well trade paper PMs for efficiency and cost.
I tend to buy my precious metals for beauty not resell value. Although, having done it for so long it has worked out for me in both directions.
I have always found the pre-2004 MS platinum Eagles to be beautiful.
I believe the queens beast series gets more attractive in silver and gold.
The platinum maples are attractive at a lower premium.
I like it at these prices...
I have always found the pre-2004 MS platinum Eagles to be beautiful. I agree!
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I confess to buying 10 of the 2019 Maples on Tuesday. At almost $500 below gold, I'm not too concerned whether or not it was the right move. I should post my 5 beasts sometime - I do like them in platinum. The beasts I received from Apmex ran around MS-67 to MS-68, so they aren't perfect, but not bad.
I knew it would happen.
if not buying them directly from an issuer you may be hard pressed to find them.
I am looking for some old Platinum National Commemorative medals from the Philadelphia mint like a 1963 West Virginia Centennial, or a 1963 Padre Junipero Serra 250th anniversary California, or a 1967 Alaska purchase centennial. These are tough to find and I would pay 3 times spot for one in decent shape.
Like silver, platinum is not trading correctly due to paper and ETF short sellers. The mines are not doing very well economically and several have already shut down. Some physical is still available from by-product sales, but some are not selling it for strategic or economic reasons. Best to stockpile the real thing it while the price is this low.
National Commemorative Medals of the U.S. Mint:
https://www.pcgs.com/setregistry/u-s-coins/medals-tokens/national-commemorative-medals-united-states-mint-1940-present/alltimeset/195526
JmSki, please do post your Beast Series photo.
the items you are willing to pay for aren't Bullion, they are Numismatic medals. Platinum may have had its day already so I wouldn't put anything into it for the future.
JMHO, of course.
I saw the same email this morning. Checking the site a lot are sold out. Now the dilemma of internal debate. Eagles or Maple Leafs look good as does the Queens Beasts for a little higher premium.