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Platinum, what is the best play?

Discussion in 'PM's - Coins - Numis - Base Metals' started by Fjpod, Apr 26, 2016.



  1. Fjpod

    Fjpod Silver Member Silver Miner

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    I may be a little late to the game, but with Platinum selling for less than gold, what might be the best way to make a play? Physical? Paper? Stocks?

    To me, this wouldn't be a longterm, doomsday stacking. It's more of a market play. I mean never assume anything, but I assume Platinum will outprice gold again soon.
     
  2. Starter

    Starter Silver Member Silver Miner

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    Personally, I would recommend trading platinum through ETFs, using a brokerage account.

    Recently, I have been using ETFs to trade silver, even though I am focusing on gold for my physical purchases. In this way, I have benefited from the recent plunge in the GSR during the last several weeks.

    For platinum, there is an even stronger case to use ETFs, in that the dealers will use a bigger spread in their transactions with you, for both buying and selling, compared to silver and gold.
     
  3. glockngold

    glockngold Gold Member Gold Chaser

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    True dat.
     
  4. oldgaranddad

    oldgaranddad Gold Member Gold Chaser Site Supporter ++

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    Platinum is tied primarily to the automotive industry and secondarily to the medical industry. These industries drive the demand and the price of the metal. Bad auto sales make the price dive. Secondarily, Russia had and probably still has a huge stockpile and they have occasionally dumped it onto the market for their own purposes. Other than that I too would recommend using ETFs for this investment. Then again, if it is not in your hand then it it is not yours.
     
  5. rte

    rte Silver Member Silver Miner

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    the best way to make a play? Physical?
    You could get a DUAL collectible and make a few points in the process.
    [​IMG]
     
    historyrepete and oldgaranddad like this.
  6. Fjpod

    Fjpod Silver Member Silver Miner

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    I don't want a ball and chain. ....
     
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  7. the_shootist

    the_shootist The war is here on our doorstep! Midas Member Site Supporter ++

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    The only platinum I own is in my truck's exhaust
     
  8. Chester-Copperpot

    Chester-Copperpot Gold Member Gold Chaser Site Supporter Platinum Bling

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    I've been buying platinum Maples last year and this year. My goal is quite simple. When the GSR hits the 40's I'm trading my silver for gold. When platinum starts moving and over takes gold again, I'll trade platinum for silver. Gold never gets traded.
     
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  9. Fjpod

    Fjpod Silver Member Silver Miner

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    Why is the premium so high on US minted Platinum Eagles?
     
  10. oldgaranddad

    oldgaranddad Gold Member Gold Chaser Site Supporter ++

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    Because the US Mint knows that they can get it. The premium is based upon many buyers irrational belief that something familiar (US Mint products) are worth the premium over other foreign mints' products when in fact there is indeed no difference. Some buyers believe in times of trouble that US Mint made products will be easier to sell or exchange. I guess that theory is true if you deal with the under-informed, idiots or both.
     
  11. hernancortes

    hernancortes Gold Member Gold Chaser

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    Not irrational at all --- perception is reality. Their high premium is based upon them being in perpetual short supply. That they're a US coin is necessarily going to increase their demand standing against other physical options.
     
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  12. CrimsonGuardJay

    CrimsonGuardJay Silver Member Silver Miner

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    Same. Platinum Eagles have a very low mintage, take the 2006 bullion strike, a total of 6,000 total mintage. The proofs are even lower and have amazing designs.
     
    Last edited: May 19, 2016
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  13. oldgaranddad

    oldgaranddad Gold Member Gold Chaser Site Supporter ++

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    True but that "perception" is irrational. Other mint's that produce Platinum coinage produce the same quality with a lower premium. Why would you pay a premium for someone else's irrational fantasy that the mint of the country is that much better than a foreign mint's product? Add this kicker in too. The courts have held that all US coinage produced by its mints are the property of the US government and such the courts have left a legal loophole yet to be exploited for another twisted justification to allow another 1933 confiscation. (yes, I know this is just a llegal "what if" but in the last 10 years we have seen so many far fetched legal "what ifs" become judicial precedent). With a foreign coin the US government "supposedly" has no claims on the piece... then again with the way the SCOTUS justified Obama-Care as a tax, not a tax, insurance, not-insurance, mandate, voluntary, etc. anything is possible.
     
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  14. Chester-Copperpot

    Chester-Copperpot Gold Member Gold Chaser Site Supporter Platinum Bling

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    Here's the thing about platinum Eagles. When you want to sell, a local coin shop(if your lucky) will pay spot +$50. Bars maybe a hair under spot and Maples spot +$20. In order to get the full value your stuck selling on eBay. I stick to Maples and pay $80 over. Still a high premium, but it's what I favor.
     
  15. HistoryStudent

    HistoryStudent Midas Member Midas Member

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    PT is on par right behind AU and AG. The best play is ounces - close to spot as the premiums will allow.
    They offer you a third way to have PMs.

    Compare APEs to Canadians to Australians in any form.

    I also collect APEs in proof and changing reverse APEs W in MS (2006 to 2008) because they were so low in mintage
    before the gold spouses started to die.

    HS
     
  16. 917601

    917601 Mother Lode Found Mother Lode

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    " what is the best play?", buy physical. Speaking from experience, I have done very well buying the best I could afford, deep cameo graded proofs years ago....( from Tulving) as for " selling", mom and pop shops do not have the money to buy in quantity the graded proofs, larger recognized PM dealers who do have money ( lots of money) will...if you are in PM's to " play", you will more than likely lose.
     
  17. ttazzman

    ttazzman Midas Member Midas Member Site Supporter

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    I stacked a lot of physical PT when spot was under 1k......as a alternative long term investment.........premiums are always governed by replacement costs......as with any physical PM purchase watch the market and buy dips n sales anything to lower premium............if your just doing a short term direct metal gamble then Paper ETFs as mentioned are as good a play as any...
     
  18. Duckworth

    Duckworth Seeker Site Supporter ++ Seeker

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    To my way of thinking this is a real concern, and makes me lean toward acquiring Canadian, Brittish etc. metals. I wouldn't put anything past this government though, and under the right set of circumstances there may be no safe havens.
     
  19. ttazzman

    ttazzman Midas Member Midas Member Site Supporter

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    a melting pot cures all those legal coinage issues real quick........its a NON ISSUE to me.....but buy metal at the very lowest premium when you can

    confistication would force me to fire up the melting pot and create some gold...silver...plat....nuggets on my property to be mined when needed....
     
    Last edited: May 27, 2016
  20. Chester-Copperpot

    Chester-Copperpot Gold Member Gold Chaser Site Supporter Platinum Bling

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    Getting close to start swapping silver for platinum.
     
  21. Fjpod

    Fjpod Silver Member Silver Miner

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    My lcs sells PMs at very low margins. I can always get 90% silver and gold. for less than on eBay and $pmex.... But he never has Platinum.
     
  22. HistoryStudent

    HistoryStudent Midas Member Midas Member

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    Did that last year...
     
  23. hernancortes

    hernancortes Gold Member Gold Chaser

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    From an 'it all melts the same' standpoint, yes it's irrational to prefer plat eagles. But I'm in the USA and it's rational to assume American's preference for APE's will persist, and their scarcity in the market will persist so the premiums will persist. The mint lost money minting plats in '08 and after a 6 year hiatus lost money on them again in '14. Some have also been melted.
     
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