Platinum and spot price question

dennis1219

With platinum spot price near $900 and gold near $1300... why is it that a 1/10 oz eagle are going for roughly the same cost. My assumption is mintages but

bronco2078

@dennis1219 said:
With platinum spot price near $900 and gold near $1300... why is it that a 1/10 oz eagle are going for roughly the same cost. My assumption is mintages but

The good ship SS platinum is high and dry on a sandbar . There is a huge overhang of supply bought at much higher prices owned by people that dwell on fantasy island. They dont want to face the truth so keep sell prices high because on the one hand they can't accept they were wrong about this most useless of all PM's ( sorry Palladium not enough suckers bought you) and on the other hand (or possibly the back side of the same hand? ) actually selling will lock in the magnitude of their loss

CCDollar

@bronco2078 said:

@dennis1219 said:
With platinum spot price near $900 and gold near $1300... why is it that a 1/10 oz eagle are going for roughly the same cost. My assumption is mintages but

The good ship SS platinum is high and dry on a sandbar . There is a huge overhang of supply bought at much higher prices owned by people that dwell on fantasy island. They dont want to face the truth so keep sell prices high because on the one hand they can't accept they were wrong about this most useless of all PM's ( sorry Palladium not enough suckers bought you) and on the other hand (or possibly the back side of the same hand? ) actually selling will lock in the magnitude of their loss

That seems to explain it.

Take care...CC

ricko

Platinum and Palladium are why I stick with gold and silver..... Cheers, RickO

MilesWaits

Platinum, Palladium, silver and gold are why I stick with PMs.
I like how they look and how they sound when I drop them.

Timbuk3

!!!

asheland

I won't touch them at those premiums.

jmski52

I won't touch them at those premiums

Platinum 1/10th ozers have historically commanded a premium that is more than 1/10th oz AGEs, and I suspect that the reason is simply because there are bucketloads more 1/10th oz AGEs floating around, i.e., they will always be MORE LIQUID. Better liquidity is worth some $$s.. I can't tell you exactly how much more $$s, but I can say that liquidity matters.

With the current market pricing, gold = $400 more per oz than platinum, there is no reason on God's Green Earth to buy 1/10th oz Plats at the same price as 1/10th oz AGEs. No reason.

Generic, i.e. ungraded 1 oz Plats or Maples are running around 10% to 12% over spot, which is closer to reality, compared to any 1 oz gold bullion coin, most of which are probably running around 1% to 3% over spot. That's about a 9% difference percentage-wise between platinum vs. gold, and that's quite enough to compensate for liquidity concerns.

If you are collecting 1/10th oz Plats, the premium is simply the market price for that date. But, I don't see that as the main impetus for the price structure in the OP. I think it's closer to what Bronco describes in the case of 1/10th ozer Plats. A 40% to 50% premium differential between platinum vs. gold in 1/10th oz coins is simply a bad, bad deal.

The good ship SS Platinum does sail once in awhile, but it's more like a taking a discovery trip around the world with Magellan in 1519 than it is like taking a luxury cruise along the Alaska coastline in 2018. And it might be that long before it sails again, argh.

But, a $400/oz. difference between the two metals makes platinum a worthwhile thing to consider. That type of inverted disparity between the two metals just doesn't come along very often, if ever.