Wil platinum ever surpass gold again in price?

I was looking at historical charts on gold and platinum a few days ago. Historically platinum has always been more expensive and was passed in spot price by gold recently. There's a $180 gap between them now. I don't have the knowledge or complete understanding of why they've switched places at the top other than the fact that lots of people are investing in gold? But would it be safe to say that platinum will one day pass gold in value again and it's a good time to buy platinum while they are so far apart in price? Or is gold at the top for good? I know no one can predict anything, but this seemed like a legit question to me after looking at the charts. I don't own any platinum yet. Any thoughts from someone who has a platinum predilection?

 

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It really depends on industrial demand, are you bullish or bearish on global economy? If you are bullish Platinum will once again overtake gold other wise its vice vera and platinum could get further more..

 

My understanding is platinum has primarily an industrial value while gold has both an industrial value and a currency value. However, there is more gold that can be produced than there is platinum. So, I guess theoretically the demand for gold is higher, but the supply of platinum is lower. I think it's anybody's guess.

If you want to invest in an industrial metal with some potential, have a look at palladium. There is some concern the supplies are dwindling fairly quickly.

 

So, the million dollar question... Is this a good time to buy platinum? If so, where is the lowest price for platinum?

 

Here's a recent article on the subject: Buy PPLT

 

Silvertip, I dunno what direction prices will go, but I have a STRONG conviction that pt will eventually price ahead of gold. Remember, gold gets hoarded, platinum gets consumed. One way to play this ratio being out of whack is to buy PPLT (platinum etf) and also, buy DGZ (short gold). As the ratio closes, you would make more money on the pt than you lose on the gold. Up or down price environment.

 

I also think long term, other things being equal, platinum has to be higher than gold. Short term, though, no way of telling since they are completely different markets. As to whether its a good time to buy, are you assuming Platinum is underpriced or gold overpriced?

Having said that, if I was in the market to buy a PM today, I would be buying platinum or palladium.

Chris

 

I think this answer hinges on how well the economy does. Strong economy = platinum demand + less need for money printing = less inflation pushing up gold prices. Weak economy does the opposite. So I would not try to predict which one is going where, but rather look to them as an indicator of economic strength.

 

The biggest use, by far, for platinum is inside automotive catalytic converters. So where car sales go, so goes the price of platinum. (there is some recycling of catalytic converters) For coinage and jewelry, I don't think it is particularly attractive. Nothing like gold for that.

 

Just as a FYI, in Japan platinum is the metal of choice for jewelry, gold is considered cheap.

 

Platinum is superior to gold in jewelry...

 

So I guess the answer is yes platinum will probably surpass gold again. Whether it passes gold at its current price range or it stands still as gold plummets is the million dollar question. I think I'll play this one on a small scale and likely I'll wish later I'd have been more bold. Thanks for the input.

 

Platinum will overtake gold i believe, but both metal are at a high now so both may fall to a lower price, thats the best time to buy.

 

It appears that PM's go up and down with the stock market now or it seems that way to me. I've always heard it was the opposite. So lately, I don't see how they can be used in gauging the economy?

 

Why is that? when it comes to jewelery (in India and China) gold is far more desired and purchased than platinum.

 

Yes gold is preferred, its a cultural thing. Gold has been around for thousands of years, platinum for only around 200 have we been able to refine it well.

My guess, (and forgive me if I misspeak for you Hullcoins), is he is referring to platinum wearing better and less apt to break when used in jewelry versus gold.

Chris

 

Well it is not just cultural they did make platinum jewelry in South East Asia but reason Gold is more desired is because it very malleable, for example some of jewelery work they have gold leafs and thin gold coins attached to a necklace. Things you cannot do with platinum.

Also White gold is as durable as platinum for every day use.

 

White gold is a US concoction not really used anywhere else in the world. It is viewed as some kind of backward, worthless metal to most countries. I think of it as the US Frankenmetal invented as a wartime substitute for platinum, but continued by jewelers due to the high profit margin selling it to gullible Americans.

Regarding mallability, you are right, its the most mallable metal. I have not personally seen thin gold leaves or thin gold coins in those countries, though, and I have been to all you describe and am friends with some gold dealers in those countries. They actually buy all of their jewelry from the middle east, they don't make it locally usually. Most gold jewelry is as thick of thicker than here, as its a status symbol and a source of savings in those cultures.

I really like how their jewelry industry works, but that is kind of off topic.

Chris

 

White Gold is sold in Asia it may not be the most popular thing but i see it quite frequently sold and purchased for weddings.

For weddings and other events this typical gold chains that are sold there. Number of gold coins adds to the status.

 

Interesting. Where do you see white gold in Asia? I am just curious. The necklace here looks Indian. You are correct for weddings such items are common, but many of this gets returned back for cash afterwards. . For daily wear I see solid gold more used.