Whats the deal with platinum?
slinc
Posts: 480 ✭✭
On advice I got on here I've been adding a little platinum to my stack. I'm finding despite the difference in current spot prices getting PCGS graded platinum is pretty much running the same price as gold of the same weight. Anyone know why this is?
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I knew it would happen.
<< <i>There's really only one reason. Buyers are willing to pay up, and sellers aren't willing to sell for less. This indicates to me that the spot price on the exchanges do not accurately reflect the price on the street. >>
I disagree. The OP specifically states "PCGS coins", and not the metal itself. This has nothing to do with spot prices on the exchange/street. As a metal.....speaking strictly on its bullion value.....platinum can easily be obtained for less money than gold on an oz for oz basis. And if you dont beleive me, I will sell you literally as much platinum as you want for less than the current spot price of gold, just PM me with your orders.
But my english is still bad...MM
<< <i>I understood the OP was saying that, for example, 1/10 oz of PCGS Pt costs the same of 1/10 oz of Au.
But my english is still bad...MM >>
And thats absolutely true. But Jmski's claim that the reason is due to the spot price of pt on the exchange not jiving with actual spot price on the street makes no sense. I can buy pt all day long for about $1460 right now.......WELL UNDER gold's spot of $1620.
It would be like me saying that Engelhard 1oz ag bars are selling for $7-$8 over spot and claiming its because of a disconnect between spot and physical pricing. Simply not true. Silver bullion can be had for as little as $1 over melt.
The OP was specifically talking about certified collectible coins that happen to be made of platinum. Their prices are driven mainly by spot, but there are other factors at work as well. But that pricing has nothing to do with spot being too low for what actual physical is currently selling for. You can buy as much physical platinum as you want for just $50 over spot at the moment.
Some forms of PM sell, in an active market, for LESS than spot (think sterling flatware, dental gold, broken necklaces, old 10k high school rings with someone else's name and date on them, etc)
Some sell for just a little over spot (bulk 90%, generic 100 oz bars, kruggerands)
and some forms of metal sell for well over spot, because there's some numismatic or "coolness" component beyond just the metal.
It seems a fractional platinum eagle in a PCGS MS69 holder qualifies for a bit more premium than "spot" because, as jmski52 points out, sellers won't take less and buyers pay up.
Liberty: Parent of Science & Industry
I've also tried to buy PCGS Plats at the last several coin shows and find that the premiums have risen steadily irregardless of price, in addition to them having become difficult to find at all - which does corroborate what I said.
It's not clear whether the OP was comparing PCGS Plats to PCGS AGEs, but it does seem that if the OP wants a deal on PCGS Plats, maybe he should go directly to Gecko as his source. He can get them all day long for less than spot gold.
I knew it would happen.
I knew it would happen.
TD