How long will gold be of more value than platinum???

Goldbully · January 4, 2012 12:30PM

Is the most difficult mined platinum doomed to be a slave to gold???

Justacommeman · January 4, 2012 1:23PM

I'm guessing if and when the DOW takes out 14,000 or makes a new high. MJ

PerryHall · January 4, 2012 4:15PM

Platinum is mostly an industrial metal so I'm guessing that when we get out of this recession Platinum will once again exceed gold in value as industrial demand rises and the supply stays fairly static.

derryb · January 4, 2012 8:04PM

Until demand for new automobiles drastically increases.

cohodk · January 4, 2012 10:32PM

As long as there is irrational discouragement.

Baley · January 4, 2012 11:28PM

Irrational discouragement, I like that term. See also, "Stubborn Pessimism" and "It's Hip to be Cynical"

jmski52 · January 5, 2012 12:54AM

Don't be in such a rush. It'll happen in due course.

Practical realism.

botanist · January 5, 2012 1:46PM

The gap of Au over Pt is now a tiny bit over $200. Is that the largest gap in modern times in favor of Au?

Baley · January 8, 2012 2:20PM

one problem with platinum among investors is that it looks just like silver (and nickel, and stainless steel, and a dozen other white metals)

There's only one Gold

jmski52 · January 8, 2012 9:44PM

Platinum is denser and just as much fun to hold in your hand.

TwoSides2aCoin · January 8, 2012 9:55PM

As long as she wants her diamonds set in gold...

pf70collector · January 9, 2012 5:36AM

Platinum is a scary metal meaning a price drop of almost $1500 in 08 from its high of $2300 an ounce. That 2011 U.S. mint platinum proof has seen a price drop of $500 in 2011 alone. An $800 an ounce entry point if probably the safest it will ever get.

Baley · January 10, 2012 12:37AM

The gap of Au over Pt is now a tiny bit over $200. Is that the largest gap in modern times in favor of Au?

The gap has narrowed a bit, $177

Baley · January 10, 2012 11:46PM

Pt-Au gap now $155

cohodk · January 11, 2012 12:13AM

Platinum is "white, cold, sterile".

Gold is "yellow like the sun, warm and inviting".

Platinum is much more rare and has better fundamentals.

Gold is emotional.

Gravity and electromagnatism are strong forces, but nothing is as strong as human emotion.

This is why gold has (more) value.

TheBigB · January 11, 2012 12:19AM

Remember that you can eat gold too...

Baley · January 11, 2012 12:25AM

Mmmmm Toro

the fish is worth way more than the gold leaf on top

CaptHenway · January 11, 2012 12:34AM

Ans: All of the above. Gold is the more desireable metal for many reasons. Platinum has an important industrial use that is currently in decline, but may pick up.

The joker in the deck is: What would happen if some different, cheaper and/or more effective alternative to the catalytic converter was to be invented?

jmski52 · January 11, 2012 1:42AM

What we have here, is a "pricing anomaly" relative to scarcity. It's good enough to warrant buying some platinum and that's what I've been doing for my Plat collection.

Portfolio balancing is another good reason to consider platinum now, particularly if you own gold already.

If they figure out an efficient catalyst that is effective enough to replace platinum, I for one will be surprised. The chemistry and metalurgy makes it work. Don't think that they haven't been trying, but I just don't expect a breakthrough. Platinum is valuable for a reason.

Baley · January 11, 2012 2:13AM

For US jewelry use, the high end stuff is platinum, or at least white gold. The rest of the world may still love wearing yellow gold, but in our country, increasingly,

Yellow gold jewelry is viewed by some as passe, as cheap looking and feeling (esp. 10k), and as common. At worst, "Mr. T" jokes are in the offing with a lot of yellow gold around the neck

TheBigB · January 11, 2012 2:28AM

<< Yellow gold jewelry is viewed by some as passe, as cheap looking and feeling (esp. 10k), and as common. At worst, "Mr. T" jokes are in the offing with a lot of yellow gold around the neck >>

Baley, I pity the fool that disrespects the yellow metal.

jmski52 · January 11, 2012 2:35AM

Baley, I pity the fool that disrespects the yellow metal.

CaptHenway · January 11, 2012 6:35AM

<< 

<< Yellow gold jewelry is viewed by some as passe, as cheap looking and feeling (esp. 10k), and as common. At worst, "Mr. T" jokes are in the offing with a lot of yellow gold around the neck >>

Baley, I pity the fool that disrespects the yellow metal. >>

Baley · January 11, 2012 9:57AM

Gold is flashy, and brassy. Platinum is classy and sassy!

Au-Pt spread now $145

Another great Clubber Lang quote:

Announcer: "Clubber, what is your prediction for the fight?" Clubber: "Prediction?" Announcer: "Yes, prediction." Clubber: "Pain"

RGJohn · January 15, 2012 2:50AM

American auto plants are hiring again.
Japanese are opening/expanding US plants and also hiring.
More workers = more autos = more catalysts = more PGM demand = higher prices?
Mebbe.
----
On the other hand gold is more universally recognised (probably how it acquired that flashy reputation). Of course they slammed Madonna for the same and look at what she's worth!

Stork · January 15, 2012 3:21AM

I know when!

I have developed a lovely allergy to my gold alloy engagement ring/wedding band. I have a platinum band in the mail...in about 6 weeks when I have determined I am NOT allergic to platinum and go to order a new setting for my engagement ring...well platinum is sure to triple overnight.

According to my husband the Dermatologist broke the man-code--apparently he should have told me to try either ceramic or plastic, not platinum...

Stork

(ps does anyone recommend a good jeweler that will work through the mail--I'm stationed overseas right now)

Weiss · January 15, 2012 8:49AM

I traded 10 oz of Au for 10 oz of Pt a couple of months back...

gsa1fan · January 15, 2012 7:38PM

Gold is in it proper place!

platinum ~sux

Gold ~ ROCKS!

Yellow Gold is $$

OPA · January 16, 2012 7:40AM

<< How long will gold be of more value than platinum??? >>

By July 31.... Gold had it's day ... now it's Platinum's & Rhodium's turn. Got to get every one involved... like musical chairs... silver was the odd man out during the last go around.

jmski52 · January 16, 2012 9:29PM

Weiss's swap trade will look better and better this year, I think. The only problem is the tax bite on the gain.

Wingsrule · January 16, 2012 9:43PM

I'll take a tax payment on a gain over the alternative scenario any day of the week.

Baley · January 17, 2012 12:32AM

the spread continues to narrow, now $134

Overdate · January 17, 2012 5:14PM

Catalytic converters account for less than 1/3 of total platinum demand. If that source of demand went to zero overnight, the price would take a hit, but there would still be plenty of demand from other quarters to support the price and keep it from going too far down.

With an annual new supply of less than 7 million ounces, and 93% of that supply mined in politically uncertain regions, I think platinum is a decent value at today's prices even if automotive and industrial demand for the metal declines over time.

Baley · January 23, 2012 1:59AM

Au-Pt spread now $116.

Anyone else expecting this trend to continue?

jmski52 · January 23, 2012 3:22AM

Au-Pt spread now $116.

Anyone else expecting this trend to continue?

The "Platinum Watch" Thread. I love it!

I expect this trend to continue, but in my opinion it does depend on industrial demand for platinum vs. the international reserve currency status of the dollar and the evolution of the Western Debt Crisis.

As long as the world economy doesn't grind completely to a halt, platinum will continue to recover. I think it's been oversold way beyond any fundamental reasons. Platinum:Gold ought to be at least 2:1.

Weiss · January 23, 2012 7:26AM

<< Au-Pt spread now $116.

Anyone else expecting this trend to continue?

The "Platinum Watch" Thread. I love it!

I expect this trend to continue, but in my opinion it does depend on industrial demand for platinum vs. the international reserve currency status of the dollar and the evolution of the Western Debt Crisis.

As long as the world economy doesn't grind completely to a halt, platinum will continue to recover. I think it's been oversold way beyond any fundamental reasons. Platinum:Gold ought to be at least 2:1. >>

Well said, and I agree.

derryb · January 23, 2012 9:11AM

could change soon, auto sales seem to be picking up, especially in Japan.

Overdate · January 23, 2012 9:24AM

On the other hand . . .

A less-than-bullish analysis of platinum.

Spooly · January 23, 2012 10:41AM

Overdate - Thanks for posting that!

derryb · January 23, 2012 10:54AM

<< On the other hand . . .

A less-than-bullish analysis of platinum. >>

Excellent analysis. It boils down to what the car industry will do. While it will take years to reach pre-crisis sales numbers, I'm seeing a lot of new cars on the road. When you think about it there are a lot of people not buying homes now. Cars are the second big ticket item and I believe a choice between the two will become a new car. I'm banking that the crisis and subsequent reduction in auto demand have caused platinum to be oversold. The fact that it is now below gold re-enforces this (unless gold is overbought). Put me in the buy platinum group.

Baley · January 23, 2012 11:28AM

Yes, great article, thanks for posting. Links like that and analysis like in this thread make this place awesome.

Wasn't the spike in Plat prices a couple years ago due to problems in the South African mines? A power interruption or something?

Something like that (or a strike (or other social unrest) I guess is the other big danger) could cause another spike (which the author hints might again be short-lived, making the wise thing to do if/when that happens is to take some profits?)

jmski52 · January 23, 2012 1:18PM

Wasn't the spike in Plat prices a couple years ago due to problems in the South African mines? A power interruption or something?

Big problems with infrastructure of power generation and transmission which is essential for cooling water and air circulation in the mines. That problem hasn't gone away. Some mine collapses & subsequent strikes - a situation which can't be getting any better because the mines have to keep going deeper.

Social unrest - that I'm not sure of in S.Africa these days.

Baley · January 24, 2012 11:27PM

Spread between platinum and gold spot prices continues to narrow, currently $108

nibanny · February 7, 2012 12:49AM

The spread is under $100 now.

Baley · February 7, 2012 11:18PM

$89 at this time...

Baley · February 21, 2012 11:20PM

Au-Pt spread now down to $42. This unusual price inversion appears to be ending..

How long will gold be of more value than platinum???

In the the physical market? any day now, maybe already?

Justacommeman · February 22, 2012 12:37PM

<< Au-Pt spread now down to $42. This unusual price inversion appears to be ending..

How long will gold be of more value than platinum???

In the the physical market? any day now, maybe already? >>

You have been all over this one so far. MJ

jmski52 · February 29, 2012 4:54AM

$18.00 spread now, but I don't necessarily like how it happened. Gold down $87.00 today, and platinum down $37.00.

Baley · March 1, 2012 11:06PM

11 buck spread at the moment..

Baley · March 3, 2012 1:56AM

I'm going to predict that March, 2012 is the month the Pt/Au price inversion ends, and that by 3/31 Platinum will be trading higher per ounce than gold.

Weiss · March 3, 2012 3:29AM

How long will gold be of more value than platinum???

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