Platinum vs Gold

HJP

Hi,

I have been out of touch with coins & PM's for a year or so & have recently begun to buy platinum & gold. What are your thoughts on the appreciation potential of US platiunum eagles vs. pure bullion products (i.e Pamp Suisse or JM bars)? Personnally, I have been buying US platinum proof sets.

Also, is the near 1:1 correlation of the price of platinum to gold indicate a strong buy signal in platinum - or is the strength in the price of gold vs platinum merely a signal that the PM market favors gold as better store of value?

Any comments are appreciated.

Happy Holidays!
HJP

asin

I like gold more then platinum auto maker bail outs and all that lack of production.

MoneyLA

good questions here. clearly platinum has been depressed by the weakness of the auto sector.

so what happens to platinum when the auto sector comes back to life? and will platinum still be a valuable metal when hybrid and electric vehicles are in use?

I dont follow platinum much at all, so besides jewelry and autos where is platinum used?

I would appreciate the info because the 1 to 1 gold to platinum ratio is also appealing to me.

thanks

Cladiator

Consumer and industrial items made with platinum and other pgms include such items as flat panel monitors, glass fibre, medical tools, computer hard drives, nylon and razors, among others.

Automotive catalytic converter applications are the largest current users of PGMs and this demand is growing. These devices treat the exhaust before it leaves your car, reducing pollutants. As more jurisdictions around the world implement higher clean air standards, the demand for platinum from automobile makers is expected to increase as well, although some manufacturers have begun to turn to lower-cost palladium for this function.

Interestingly, though, the higher demand for diesel-powered vehicles due to increasing energy costs is expected to fuel still more demand for platinum. New auto catalyst requirements in the medium and heavy-duty truck markets are expected to offset the substitution for palladium in automobile manufacture.

Platinum, of course, retains its status in the high-prestige jewelry markets. This use accounts for about 20% of all platinum production at this point, with excellent demand in newer markets like China, Japan and India.

Source: LINK

COINB0Y

HJP,

I think you are mixing PM and Numismatic values when you are buying US platinum proof sets. That said, closer to melt, you can't go wrong.

Never did I think I would be buying (4) $50 2008 W Proof Plats which are now the Keys of the Platinum Proof Series at less than a 25% premium over melt.