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Convert Gold to Platinum?

CyStaterCyStater Posts: 681 ✭✭✭
in Precious Metals
I've never purchased platinum but with the spread between gold and platinum being what it is right now I have been thinking about it.
If given the three choices would you?

1. Sell off a portion of gold and buy platinum as the spread is pretty narrow right now.
2. Sell off a portion of gold and buy silver since the price of silver is down at the moment.
3. Hold gold/buy gold.

Or something else?

Thoughts?

Comments

  • PerryHallPerryHall Posts: 46,112 ✭✭✭✭✭
    What's wrong with a well diversified portfolio containing all three metals? I don't think it matters over the long haul since they all seem to move in tandem.

    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

  • jmski52jmski52 Posts: 22,824 ✭✭✭✭✭
    Go Cyclones!

    I would never fail to give my best advice to a fellow Cyclone!image

    Why sell anything? Stop the bleeding of transaction costs, and just save up to buy some platinum. The thing about having some platinum is that it makes very little difference in a portfolio until your % reaches 20% of your total precious metals investment. Then, you start to see some effects.

    The effects are neither good nor bad. All 3 generally buffer against a declining dollar, so in that sense Perry is correct. He is also correct in suggesting a portfolio of the three - but in my opinion, it is to provide some protection against volatility.

    I must disagree with Perry about them moving all in tandem - they don't. Silver is all over the place, and gold acts as true money ought to act. Both silver and platinum act mostly like industrial metals, but with a pinch of speculation thrown into the mix.

    If you remember platinum's last big spike, 2008 I believe - the reasons behind the spike were the limitations of S. Africa's power grid, coupled with the nature of mining at deeper and deeper levels. Demand will not stop growing, in my opinion. It is the supply that will be problematic. Palladium has it's own supply problems, and in my opinion, although it can substitute for platinum in many cases, it is slightly inferior in it's total set of physical properties.

    Platinum is my speculation for a home run in the long term - because of the eventual supply squeeze. In the meantime, it mimics silver's price movement most of the time.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • CyStaterCyStater Posts: 681 ✭✭✭
    Thank you both. I've paid little attention to platinum. Bought physical silver and gold slowly over the past six+years. I have a dedicated amount/month for PM's. So if I buy platinum then that is less gold/silver I can purchase. I can sell gold (I guess I could even sell silver but don't feel that is the best move) and move a larger portion into platinum. I've just never looked at anything beyond AU and AG in the realm of PM's so I don't know much about it.

    Thanks again. and go Clones. image
  • PerryHallPerryHall Posts: 46,112 ✭✭✭✭✭


    << <i>I must disagree with Perry about them moving all in tandem - they don't. >>



    Notice that I said "over the long haul"?

    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

  • jmski52jmski52 Posts: 22,824 ✭✭✭✭✭
    Notice that I said "over the long haul"?

    Noted!image
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • TheBigBTheBigB Posts: 942 ✭
    I just wanted to post this interesting story on palladium.

    Stillwater: A Rare Precious Metals Stock Poised for Success
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