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Need advice on Platinum coins please

tallarrs1tallarrs1 Posts: 61
in Precious Metals
Hi I am considering purchasing some 2006 w platinum eagles and looking for thoughts on if this is a decent long term investment? Thanks!

Comments

  • OverdateOverdate Posts: 7,007 ✭✭✭✭✭
    They have positives and negatives - at this point they are as much a speculation as an investment.

    I assume you're referring to the 2006-W burnished uncirculated Platinum Eagles, not the proofs (which have a considerably higher mintage).

    The chief attribute working in their favor are very low mintages. However, only the $10 (1/10 ounce) coin has the lowest mintage in its denomination. For the other three sizes, the 2008-W mintage is lower.

    Points not in their favor include the present lack of a strong collector base, and resultant lack of liquidity when compared to bullion coins. There is also the issue of affordability. The higher the price of platinum, the less affordable platinum coins are, the lower the percentage premiums for scarce dates, and the fewer the number of collectors for the series.

    The prices of the half-ounce and full ounce coins are especially sensitive to the platinum price, and the risk (and potential reward) is correspondingly higher for those coins. The prices of the quarter-ounce and tenth-ounce coins are more tied to their scarcity and are likely to be less volatile.

    These are some of the factors to consider when deciding whether the 2006-W burnished Platinum Eagles make sense as a long-term investment.

    My Adolph A. Weinman signature :)

  • tallarrs1tallarrs1 Posts: 61
    Hmmm....ok thank you for this advice. I am also considering the 2006 20th Anniversary Gold set as well which might make a better long term investment. Thanks for any thoughts!
  • secondrepublicsecondrepublic Posts: 2,619 ✭✭✭
    Hard to predict whether any of these will be a good long-term investment. They've certainly had a big run up since they were issued.
    "Men who had never shown any ability to make or increase fortunes for themselves abounded in brilliant plans for creating and increasing wealth for the country at large." Fiat Money Inflation in France, Andrew Dickson White (1912)
  • derrybderryb Posts: 36,793 ✭✭✭✭✭
    Platinum Eagle Mintages

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

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