Does anyone invest in precious metals? I noticed Platinum is nearly $400 an oz cheaper than gold.

Discussion in 'Stock Market' started by MarathonMike, Aug 11, 2018.

  1. MarathonMike
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    MarathonMike Platinum Member

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    Just doing some casual reading I noticed that Platinum discount to Gold is huge. The production cost for Platinum is also nearly $200 per oz higher than the current price of Platinum which is about $830. Doesn't this set up for inventory depletion and a rise in Platinum prices? Is the speculation for electric cars taking over the only reason for Platinum's historic low? I've never invested in precious metals but I'm thinking of buying some Platinum.
     
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  2. depotoo
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    depotoo Gold Member

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    Plaitinum was higher than gold for years. It is just recently they have reversed. Here is an article from 2014 regarding the trend down.
    What to Think When Platinum Prices Go Lower ThanĀ Gold
     
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  3. Confounding
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    Confounding BANNED

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    Land is the best investment you can make in my opinion. Buy a ton of cheap land in remote areas. You might not live to benefit from it, but some day your very comfortable descendants will be talking about all the good great great grandpa Mike did for the family.
     
  4. MarathonMike
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    MarathonMike Platinum Member

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    I guess you can't mine for more land but there sure is a lot of it.
     
  5. depotoo
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    depotoo Gold Member

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    Make sure you get the mineral rights included, if you invest in land.
     
  6. Mac1958
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    Mac1958 Diamond Member

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    Nope.

    Price of gold, per ounce, 1972: $19.39 (OnlyGold)
    Price of gold, per ounce, as of today: $1,214.40

    Annualized return: +1.85%

    No thanks.
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  7. MarathonMike
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    MarathonMike Platinum Member

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    My question is about Platinum since it's price relative to gold is so low. Also Mac I don't understand your math on gold's annualized return, I would love to dial the clock back and load up on gold!
     
  8. Mac1958
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    Mac1958 Diamond Member

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    Luckily, I don't have to do the math. There are plenty of online calculators. I don't remember which one I used, but here's one: Return on Investment (ROI) Calculator

    I understand the draw of gold, I guess, but a 1.85% return doesn't do much for me.
    .
     
  9. MarathonMike
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    MarathonMike Platinum Member

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    Right I didn't account for inflation. But one more time, the thread is about the CURRENT price of PLATINUM and whether or not CURRENTLY that presents an opportunity or not.
     
  10. Mac1958
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    Mac1958 Diamond Member

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    No, that return has nothing to do with inflation. That's just the compounded return on buying an ounce of gold in 1792 (I goofed when I wrote "1972"). +1.85%

    The earliest price I can find on an ounce of platinum is 1987, when it was $594.50. Today it's $830.80, so that's a compounded return of +1.09%.

    Below are charts for the 10-year (top) and 1-year (bottom) prices. Based on technical analysis, and if you're a short term investor/trader, it might not be a bad time to buy.

    Personally, I don't care for commodities, and only use them in client portfolios if they specifically ask me to.

    Anyway, there ya go.

    [​IMG]
     

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