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Platinum Now at 5 Year Low

crito_is_baaackcrito_is_baaack Posts: 130 ✭✭✭
edited December 13, 2021 7:23PM in Precious Metals

So just to brag a little, I picked up some Valcambi 1 OZ bars on 9/20 when it hit the yearly low for $989 delivered to my door. That was about $80 over spot at the time. I almost instantly made the premium back when it bounced off that low the next couple of days. I want to add more to my position but I seems premiums have gone up and it won't really help me dollar cost average down at the moment so I dunno...

Pros: All-in cost of production (includes exploration) is $1100 an oz and when one mining company in South Africa temporarily closed a few months back worldwide supply dropped 25% almost overnight.
Cons: There's currently a surplus and the chip shortage will continue all of next year so demand won't return any time soon.

Comments

  • RobMRobM Posts: 524 ✭✭✭

    Pt hit low of around $600 in March 2020. Today's lows are comparable to those in September of this year. I bought some APEs back in June 2020 for less than $900. Just ordered some Valcambi bars at $997. At these prices I'm not hesitant to buy. I don't think PGMs are done. Some interesting things going on with partnerships between miners and companies like BASF to get a better balance in use of the PGMs since they are mostly mined together. The chip shortage may assist with manufacturers redesigning and substituting more platinum for palladium.

  • Weather11amWeather11am Posts: 2,018 ✭✭✭

    Wasn’t it much lower during the COVID crash in early 2020?

  • I'm using Kitco's numbers. It was obviously a little lower when I bought it but that might have been in Sydney or Hong Kong. That's one cool thing about buying from the big bullion dealers, their prices change 24/7. It really is global.

  • RobMRobM Posts: 524 ✭✭✭

    @crito_is_baaack said:
    I'm using Kitco's numbers. It was obviously a little lower when I bought it but that might have been in Sydney or Hong Kong. That's one cool thing about buying from the big bullion dealers, their prices change 24/7. It really is global.

    i look up the johnson matthey price tables... includes Pt, Pt, Rh, Ru, and Ir. priced 4x per day. london, ny, hk, hk.

  • You made me look at their data... Kitco's high/low is based solely on London Fix.

  • jmski52jmski52 Posts: 22,263 ✭✭✭✭✭

    Platinum is a cool metal, but it's not likely to see a big bump until industrial demand picks up, and just maybe when the car manufacturers decide to bring it back for catalytic convertors.

    Then again, it could end up being an inflation hedge. It's cheap right now, but the buy-sell spreads are always stiff. Platinum is one of my favorite precious metals, but then so are silver and gold. ;)

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • Thing is electric vehicles don't need catalytic converters. It's needed for hydrogen fuel cells though. So timing would seem to be important here. I'm gonna want to unload some after the chip shortage ends and catalytic converter demand returns but before EVs take over. Hydrogen vehicle demand could take another 10 years to reach ICE vehicle levels. I can wait that long but would be nice to get my original investment back out and just let the free plat ride.. :smiley:

  • rickoricko Posts: 98,724 ✭✭✭✭✭

    I like the platinum coins - really nice design. However, I will stick with silver and gold. Cheers, RickO

  • crito_is_baaackcrito_is_baaack Posts: 130 ✭✭✭
    edited December 14, 2021 10:37AM

    I misinterpreted Kitco's numbers. It's not a five year low but it's lower than it was five years ago.

    Interesting fact I just realized today, a box of 25 one ounce bars is 777 grams. Lucky sevens! :smiley:

  • I ended up going with a Valcambi 100g bar. Premium on the 1 oz bars seems to have gone up and I didn't want to mess up my average, which is just a little bit lower now. :smile: Liberty Coin still has a couple left if anyone wants one. They don't charge extra for CC purchases, so I used the float on my card.

  • Aw, missed by two bucks! Kitco says intraday high was/is $982 and I just bought a 100 gram bar for $984/ozt delivered to my door. Day's not over yet tho. And you know, if you can do it consistently, it ain't luck baby. Bounced so hard I actually heard a SPROING sound in my head. :lol:

  • Che_GrapesChe_Grapes Posts: 1,848 ✭✭✭✭✭

    Me loves me some Platinum

  • OverdateOverdate Posts: 6,888 ✭✭✭✭✭

    The Mint sold 75,000 one-ounce bullion Platinum Eagles in 2021. Someone is stacking.

    My Adolph A. Weinman signature :)

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