Poll: Given the current PM situation and availability of Platinum Eagles......
PutTogether
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Be realistic, and pick the HIGHEST amount that you would ACTUALLY pay in cash right this second for American Platinum Eagles for immediate delivery.
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<< <i>Be realistic, and pick the HIGHEST amount that you would ACTUALLY pay in cash right this second for American Platinum Eagles for immediate delivery. >>
I wouldn't buy too much Patinum until the economy turns around....it's used industrially, mainly. I'd try to buy it close to melt...so $150 over?
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<< <i>If there were an option to choose less than a $150 premium I'd choose that... too much of a premium for bullion, would rather get gold and/or silver where the premium is significantly less. >>
I second that
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<< <i>If there were an option to choose less than a $150 premium I'd choose that... too much of a premium for bullion, would rather get gold and/or silver where the premium is significantly less. >>
I second that >>
I third that. I wouldn't pay more that 5% over melt.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
1) What do you think is the current PM situation, anyway? Do you think that PMs are in short supply, or just closely-held? Do you think that the market premiums are an anomaly, or do they actually reflect reality?
2) What actually IS the availability of Platinum Eagles right now? I haven't really checked. I saw a couple at a show, but I didn't ask the price. Are they available? Has anyone bought any lately?
It's a pretty common phenomenon that the premiums increase when supply is short. Premiums also tend to shrink when the price goes up and supply increases. A premium of $150 on one ounce of platinum is a bit less than 15%. Historically, a 3% to 5% premium is normal for a one ozer. Under normal circumstances, you might have to pay 15% for a 10th ozer, so now - who really knows? Even so, the higher premium doesn't seem to be out of line compared to gold or silver - both of those metals also have higher premiums at this time.
Right now, I'd say that nobody's falling all over themselves to sell Plats, or to buy them. The action seems to be in gold. I suspect that the smartest long term buyers are the ones buying platinum now, even at a premium. The supply is becoming harder to mine. The cost of mining is increasing. The industrial demand will always be there. Undoubtedly, the funds needed to enhance the power supply issues in South Africa are competing with social welfare demands just as they are in the U.S.
Platinum is a winner for the forseeable future, in my opinion. I'm not talking speculation here. I'm simply suggesting that a steady buying & holding approach will pay off quite handsomely over the years.
I knew it would happen.
It does appear to me that there is a shortage of Plat/Pall on the market at these prices, and that if/when or as the economy improves - whether in the US or other countries - Plat/Pall will see a significant increase. I don't think I'd be out of line to say that whatever Plat/Pall you purchased today would be worth 50% more at some point in the next 5 years. A 10%/year return on your money is not bad.