Traded 1oz gold for 1.85oz of Platinum

The gold was a US mint medal from 1980 slabbed in MS68. The platinum I traded it for was a US 2007 1oz, 1/2oz, 1/4oz, & 1/10oz in an NGC set slab at MS70, plus the dealer added in a sterling ww2 bombardier pin & some cash too.

I was happy with the trade & so was the dealer I traded with. 10 years or so from now, I expect the platinum to be worth more than the gold. The gold is probably easier for the dealer to find a buyer for in the next 3 months.

Would you make a similar trade?

 

Log in or Sign up to hide this ad.

Nice platinum set! Yes, I'd make that trade and it makes sense that the dealer would be able to sell it easier than the platinum. That said, I have some platinum, almost an ounce and I'm wondering why you expect it to be worth more than gold is that wishful thinking or what?

 

Total production of platinum is a fraction of gold every year, and platinum reserves are dwindling due to use being higher than replacement.

If you took all the gold that's ever been mined, you could make about 2/3 of the Washington monument (before it sunk into a swamp). All of the platinum that's ever been mined would fit In a modest 25' x 25' conference room. About 10,000 Metric tons have been refined since it was discovered in the mid 18th century. That's about 1:20 for gold (of which approximately 200,000 Metric tons has been refined, over a longer period).

I'm also a believer in silver being out of sync with gold. Production there is about 8:1, but prices don't remotely reflect their traditional ratio.

 

Platinum's a lot more useful than gold. Doesn't have the same religious component built into its price, though.

I expect there will be some platinum spikes sometime in the next couple of decades. I'd definitely be tempted to swap gold for platinum right now, if offered the opportunity. (Assuming the weight ratio was fair, of course!)

 

10 years from now, 100 years from now, 1000 years from now, it will be the same. Only gold has that color that says "I'm rich." Platinum just looks like dull silver. Rational value-wise it doesn't make sense, but that's how people are.

Whether it was a good trade all depends on how much cash was involved. You traded $2715 worth of gold for $1784 worth of platinum without considering the cash, so it's hard to judge.

 

Yea, but nothing like GOLD! LOL.
I found this off a piece of Quartz. I need more.

 

Recall that there was a time when gold was so much more valuable than Platinum, that counterfeits could be made of gold-plated Platinum (so it had sufficient mass) and still be profitable for the counterfeiter!!!!

 

Yes, and then there were long stretches where platinum was a lot more expensive than gold. It wasn't until 2011 or 2012 that they reversed again; at times around the turn of the century, platinum's price was more than twice that of gold.

And we won't even talk about all those Jostens rings that were debased with palladium because it was so dirt-cheap...

 

Sure, gold will always be valuable for traditional/spiritual/vanity reasons. But the next time a large-scale industrial process that requires platinum takes off, it can easily overtake gold. A spike in industrial demand seems a lot more likely for platinum than gold, because platinum has unique chemical and physical properties that make it really useful in industry.

 

But is that going to happen ?

Palladium and platinum have definitely been hit by the sudden and unforseen rapid takeup in EV's in China. This is a HUGE development for the largest ICE market in the world....we're not talking about an accelerated take-up, we're talking 50% of the entire market. Imagine that in the U.S.

The CCP can madate something like that. We can't.

This also has implications for oil prices....and you can see it in the lower price of oil even when all global growth cylinders are clicking. If Russia/Ukraine ever ends...and if Iran starts exporting....you're looking at another glut and oil in the $50's.

The inability of the WMG to be dragged up by the rise in gold is very bearish, IMO. I'll see if I can get some analysis by pros who track this daily.

 

That’s a question that I can’t answer unless I see them in my hand. As long as you’re both happy is all that matters.

 

Imagine that you have an option to get (sight unseen) an MS68 Grant Wood gold 1 oz & a 4-piece matched set of 2007 Platinum in MS70, and only money to buy one of them. Which would you pick and what would be your reasoning?

 

I wouldn’t pick either as I can’t see them. If I’m going to spend that much money I want to see it.

 

I'd do it! The gold more boring and IMHO gold when struck up just does not have that "tears of the sun" appearance that native high-percentage gold does....

 

I would have to say how much cash was included in the trade ? to see if it would peak my interest but if a dealer is trading with it usually means he has the upper hand.

 

If you had the cash, I think I would have used that instead. When I looked this morning, gold was up to $2,871 an ounce , and platinum was $993. I can’t believe that gold price.

 

Yep. I think gold is in for a big price adjustment, sooner rather than later.

 

Not to be a sceptic, that really depends on the amount of gold found, I would like to think that not all moneys given. Or better yet taken, isn't all squandered. There has to be stashes of monies uncovered for gold to go up. Right?

 

I happened to check today, and discovered that palladium is finally back below platinum. Here's hoping it continues down to its old sub-$100 levels, or whatever that would be after adjusting for inflation. It's useful stuff.