PalladiumVs Platinum... longterm?

dennis1219

Too much knowledge on here not to ask. Since platinum was 1600 not so long ago and palladium was 500 recently, what’s driving these two metals that are even now. I would like to add a little to my portfolio, but confused as to the future of these two.

bronco2078

add something else not either of these turkeys , they will break your heart

jmski52

Platinum has slightly better physical & electrical properties - both are industrial metals with similar applications. The real analysis lies in terms of both supply & demand - which is always changing with the economy & the political landscapes in the countries where they are mined. Historically, platinum has been the more expensive of the two.

They both correlate fairly well with silver in terms of market moves, but as bronco alludes - they are generally not nearly as liquid as most other investments, which means that the buy-sell spreads are hardly ever advantageous for an investor and selling for a profit even in a firm market might take some time.

Having said that, platinum is fun to own and on those rare occasions when platinum heats up, you just can’t buy it for a reasonable price and buyers wlll overpay in a hurry to acquire it. It happens, but not that often. Usually, it’s like watching paint dry when it comes to both buying and selling. In my experience, platinum is a little easier than palladium to transact, but not by much.

jmski52

For portfolio allocation purposes, this would be a rough model of how the metals are deployed in the world (your estimated %'s may vary) :

Gold = 90% monetary metal / 10% industrial metal

Silver = 30% backup monetary metal / 70% industrial metal

Platinum & Palladium = 3% peripheral monetary / 97% industrial metals

The point of this observation is to show how the metals actually do provide counterweights to each other in a portfolio. They all still fluctuate vs. the dollar, and sometimes they all move together as a dollar hedge, but sometimes the health of the economic picture has more impact on silver, platinum & palladium than on gold. Governments all recognize gold as a principal monetary asset and so does the IMF.

ricko

I will stick with silver and gold.... I do like the designs on some of the Pt and Pd coins.... but not enough to forgo a gold or silver to my stacks. Cheers, RickO

dpoole

Have Pt and Pd coins for the singular art of most of those issues. Have the gold and the silver for the stacking.

cohodk

Only invest in things you know. You must be confident in YOUR knowledge and understanding, not someone elses.