platinum down big, $1720 an ounce
nycounsel
Posts: 1,229 ✭✭
Platinum spot has seen a dramatic drop in the last 2 weeks, from almost $2050 an ounce, to approximately $1720 right now.
If the decline continues, it's a mixed bag for platinum collectors.
Lower prices are the only thing that stand a chance of increasing the collector base, so if platinum drops and stays low, in the long run, it's probably a good thing for platinum collectors. New entrants are required for the increased demand necessary to support numismatic value.
In the short run, it's pain. The value of our collections, especially the more common coins which are largely valued at melt, is in freefall (though still well over issue price).
On top of that, what is the Mint going to do with 2008 pricing?
The proofs were pulled for repricing (presumably to raise the issue price) and the w-uncirculateds, at about $4300 for a 4 coin set, are priced at $2325 an ounce-- a big premium over the melt value (which, at $1725, is approximately $3200). That premium is getting bigger and bigger as platinum continues to decline.
The Mint should really decide how, if at all, it will respond, and provide some guidance to the market.
If the Mint doesn't intend to drop prices, it should say so, and collectors can decide if purchasing makes sense at such a significant premium over melt. For some, it would make sense to buy if it was known that issue price wouldn't be adjusted downwards in the months to come. The Mint should also provide an end date for sales (either based on a calendar date or the production run), so those who are waiting in the wings know how much time there is.
Until the Mint gives some guidance on what its intentions are, collectors are at an impasse.
If the decline continues, it's a mixed bag for platinum collectors.
Lower prices are the only thing that stand a chance of increasing the collector base, so if platinum drops and stays low, in the long run, it's probably a good thing for platinum collectors. New entrants are required for the increased demand necessary to support numismatic value.
In the short run, it's pain. The value of our collections, especially the more common coins which are largely valued at melt, is in freefall (though still well over issue price).
On top of that, what is the Mint going to do with 2008 pricing?
The proofs were pulled for repricing (presumably to raise the issue price) and the w-uncirculateds, at about $4300 for a 4 coin set, are priced at $2325 an ounce-- a big premium over the melt value (which, at $1725, is approximately $3200). That premium is getting bigger and bigger as platinum continues to decline.
The Mint should really decide how, if at all, it will respond, and provide some guidance to the market.
If the Mint doesn't intend to drop prices, it should say so, and collectors can decide if purchasing makes sense at such a significant premium over melt. For some, it would make sense to buy if it was known that issue price wouldn't be adjusted downwards in the months to come. The Mint should also provide an end date for sales (either based on a calendar date or the production run), so those who are waiting in the wings know how much time there is.
Until the Mint gives some guidance on what its intentions are, collectors are at an impasse.
Dan
0
Comments
Perhaps they should just kill all production for the rest of the year and start fresh next year (since I already have mine!)
Eric
Personally, I don't have a problem with the Mint not adjusting the issue price downwards, but I think they should announce that as a policy.
I don't like how they pulled the platinum proofs without notice -- no one knows if or when they are coming back, or at what price.
I really am less concerned with what they ultimately decide to do, as with the lack of courtesy shown to collectors in the way they do it.
If sales are over, tell us. If they are coming back, tell us. If they might be repriced to reflect a lower bullion value, tell us. If not, tell us. We've been in the dark for over a week, and there's no good reason for it.
The pricing decision should really be a policy matter, and they should have had a policy on how to respond to fluctuating bullion in place long before now.
Proud recipient of two "You Suck" awards
<< <i>might reprice the proofs as soon as the 30 day return window closes. How long have they been unavailable? >>
July 1. Interesting thought!!
<< <i>
<< <i>might reprice the proofs as soon as the 30 day return window closes. How long have they been unavailable? >>
July 1. Interesting thought!! >>
Not only the Plats need repricing but all Silver & Gold Mint issued items....
Box of 20