Is Platinum Undervalued?

Discussion in 'Bullion Investing' started by lonegunlawyer, Oct 2, 2012.

  1. lonegunlawyer

    lonegunlawyer Numismatist Esq.

    Is Platinum Undervalued? Why?
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  3. medoraman

    medoraman Supporter! Supporter

    IDK. Pt is completely different uses and demand structure than gold, so comparisons between the two usually end in frustration. Problem is that you never know if one is undervalued, one is overvalued, or both. :)

    Myself I like Pt, always have. I don't own much, and always did mean to own more. If I had a chance to buy some at a reasonable premium, (premiums on these always seem to be high), I probably would.
  4. Elapid

    Elapid Member

    Platinum seems to be harder to get than Gold, at least here it is. My LCS keeps the Platinum bullion for me because they know I will buy it. Still I don't get much, it's just not traded around here that much. But it's as good as gold!
  5. desertgem

    desertgem Senior Errer Collecktor Supporter

    I don't know how anyone could say that anything was mis-valued if you could buy and sell +/- 3% ( or pick your premium) within minutes at a large shop or show, or commodity house. The future of Pt. in my mind is the increase in automobiles being sold with platinum in the converters opposed to the development of a platinum substitute as a catalyst. Right now, neither one is in the driving seat ( pun intended).
  6. yakpoo

    yakpoo Member

    In an efficient market, the only way a commodity wouldn't be fairly valued is if there were market-moving information not generally available to the public. If anyone had that sort of information, I can't imagine why they would share it on CT...(just say'n).
  7. medoraman

    medoraman Supporter! Supporter

    Agreed short term. I think the OP means long term. I agree with Jim automotive applications will have an effect, but have always like the long term prospects since its used so much as catalysts, is used heavily in Japan for jewelry, and is so bloody rare. Its just a metal I wished a little more of for long term holding.
  8. desertgem

    desertgem Senior Errer Collecktor Supporter

    Everyone likes it as jewelry except the jewelers. Most would rather make 10 custom gold objects than 1 same platinum. It is very hard to work with for setting.
  9. lonegunlawyer

    lonegunlawyer Numismatist Esq.

    I was hoping nobody would bring the technicality of free and efficient markets and the invisible hand of Adams into it (not that that is bad).
  10. lonegunlawyer

    lonegunlawyer Numismatist Esq.

    I agree, industrial demand is very important.

    Silver did not really shoot up until after the Japanese reactor meltdown and tsunami.

    However, Pt seemed to run twice the price of gold from approximately 1982 until about 3 years ago. Also, nice diamonds are much more plentiful than other beautiful quality gem stones, but they command higher prices.

  11. avr5700

    avr5700 Member

    Not sure it's good to mix stones with PMs when considering causes of valuation.

    Diamonds are cartel priced and the demand has been created by a successful marketing campaign that entrenched them in the minds of the affluent as being equal to love all the while shew-shewing the perfection of man made as essentially too perfect (no...actually just too cheap and uncontrolled). Thankfully, PM is mostly absent of such ludicrous abuses. e.g. Show me a low cost way to turn lead into gold and I'll show you an instant and irrecoverable crash in the market price of that PM! Not so with Diamonds. *sigh*
  12. lonegunlawyer

    lonegunlawyer Numismatist Esq.

  13. fatima

    fatima Junior Member

    Keep in mind the resale value of most diamond rings is very bad given the outrageous markup on them at retail. Unlike PM, you are dealing with something that is 100% numismatic.
  14. jjack

    jjack Captain Obvious

  15. desertgem

    desertgem Senior Errer Collecktor Supporter

    The russian find is not gem quality, and should have minor effect. Synthetic diamonds ( over 2 carat stone possible now) and CVD ( Chemical deposited Diamonds) where a very thin diamond layer is put over another stone such as CZ, so the thermal diamond testers are fooled is the bigger threat to the industry.
  16. medoraman

    medoraman Supporter! Supporter

    Personally I would think people coming to their senses and figuring out diamonds are simply not that rare, and shouldn't be a "requirement" for wedding rings should be a bigger threat to that bloody industry.

    Anyhoo... like I said before, the danger of analyzing whether Pt is "undervalued" versus anything else is that the other thing has a different market as well. Comparisons always trip you up. Comparing versus gold is especially troublesome since gold was held down for a long time by government selling and other things. Pt has never really been affected by that to a significant degree.

    Look at Pt, look at scarcity, and then analyze anticipated demand. That is the basics. The only thing that makes me squeamish about Pt is potential new ways of making "artificial" catalysts. That would hurt the Pt pretty severely.
  17. lonegunlawyer

    lonegunlawyer Numismatist Esq.

    Hear ye, hear ye.
  18. lonegunlawyer

    lonegunlawyer Numismatist Esq.

    It is tough to compare apples to oranges, and I agree gold has been affected by government at times (especially 12-13 years or so ago when England unloaded a bunch and the price was down around $250/oz.).

    However, when gold started taking off about 5-6 years ago seemed to coincide with a couple of major world disasters, the really big and permanent jumps in gas prices, and even more rapid economic increase in China.

    Any thoughts?
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