Platinum vs Gold?

RichR

(Not so) Hypothetical question...

If you have roughly equal holdings of physical gold and platinum in your portfolio, with both up about 200% based on your original cost basis...

Would you consider selling some of the platinum to buy more gold or hold tight and let both run?

So I guess my basic question is this: is gold likely to outperform platinum going forward or will both likely continue to appreciate in tandem?

FLBuffaloHunter

They don't call platinum the only metal fit for a king for nothing

ricko

Sell enough to capture your original investment and hold the rest... the ride continues.. Cheers, RickO

RichR

So basically, not much of a chance that platinum might actually reverse while gold continues upward?

RichR

My original cost basis on the plat is about $600/ounce...how sick is that?

That's why these stunning altitudes are making me wonder what the future may hold.

BlindedByEgo

My only concerns with platinum iare that it is more dependent on industrial demand, and the price has risen more quickly than gold.

Nice problem to have!

pmac

I hold some gold, but do not have much experience on holding/selling timing. Obviously if we knew when to sell, we'd be very fortunate. I guess this is more of a question than answer; does platinum follow gold prices and if it does, could the peak price of gold and it's then decline be a good indicator when to sell platinum? Is there a lag time between the precious metals?

PerryHall

<< <i>They don't call platinum the only metal fit for a king for nothing >>



Who is "they"?

jmski52

I would minimize my transaction costs and do exactly nothing, except maybe to continue to build my position slowly. Keep in mind that by having both, you have some diversification against market fluctuations - gold being primarily monetary and platinum being primarily industrial, but both being very desirable in an inflationary environment.

NeoStar

Who is "they"?

The phrase was coined by King Louis XV of France in the 18th Century. Since then, it has been used by different publications to illustrate its greatness as a precious metal...

LINKY to Wikipedia

RichR

Ok...Ok...so most of you think this is a pretty good situation for me to be in...

So assuming I hold relatively steady overall, how does this one tactic sound...

Sell a few of the 1 ounce plat eagles (they are the first year of issue...I think 1997) and replace them roughly one for one with the 10 Year Platinum Anniversary sets?!? Then there'd be a likely numismatic scarcity on top of the raw metal content.

57loaded

<< <i>My original cost basis on the plat is about $600/ounce...how sick is that?

That's why these stunning altitudes are making me wonder what the future may hold. >>



plat prices have leveled somewhat but most all commodities are up, up, up and away.

IMHO stay "sick" for awhile longer, don't call the doctor!

nycounsel

Sell a few of the 1 ounce plat eagles (they are the first year of issue...I think 1997) and replace them roughly one for one with the 10 Year Platinum Anniversary sets?!? Then there'd be a likely numismatic scarcity on top of the raw metal content.

The 10th year sets are not scarce by platinum standards, and the trade is not worth the transaction costs imo. A better swap for scarcity is the 2006 w uncirculated $100s, which sell at a small premium to melt (maybe $50-$100 over)- around $2200 based on recent ebay sales. Those are much more scarce, and more likely to maintain value at $2000 per even if platinum tanks unexpectedly. You can look at the small premium/transaction cost you incur as insurance against the possibility of decline in bullion. If platinum keeps going up, though, the upside in either is about the same; both coins will be worth melt for the foreseeable future.

jmski52

That $600 basis sets the stage for a heckuva taxable event, which will be terrific for Uncle Sam. Why sell unless you have to?

Until recently, the early years were all considered common, high mintage and easy. With the Plat market in a state of flux and uncertainty due to skyrocketing prices and possible melting of common issues, who knows whether your 1997's will be more, or less desirable in the future?

If you haven't looked those coins over in awhile, I'd suggest taking a critical look at them to see if any of them should be submitted for grading. A nice PR-70 or MS-70 '97 or '98 Plat can justify the time & trouble spent on a grading submittal.

RichR

Thanks all...guess I should just put the key to the safe deposit box back in its hiding spot for a while longer!

ttown

Good idea, that is unless you've got some credit card debt or something of that nature.

BECOKA

I honestly think Platinum will pull back to roughly double gold. It has already pulled back $100 while gold continues to increase.