Clayton: ...exchanging gold coins almost at par for platinum coins seems like a no-brainer. Clayton -
...exchanging gold coins almost at par for platinum coins seems like a no-brainer.
Clayton -
I would not do that, even as a speculation move. Platinum, palladium, and rhodium are used primarily as industrial commodity metals unlike gold and silver, which have industrial applications but are used more in jewelry, used in coins for collecting, etc. As industrial use slows down, demand will most likely fall and prices will probably come down as well. I would invest separately in platinum, palladium, and rhodium instead of exchanging gold and/or silver for these metals.
Also, the quantity of platinum, palladium, and rhodium that is extracted is much lower than gold and silver -- tons (gold and silver) versus kilograms (platinum, palladium, and rhodium).
"All men having power ought to be distrusted to a certain degree." -James Madison
"If government were efficient, it would cease to exist."
Jim Rogers claims that silver has heavy industrial use and that the supply of gold is 5x that of silver. Can anyone substantiate this claim?
"If we wish to preserve a free society, it is essential that we recognize that the desirability of a particular object is not sufficient justification for the use of coercion."
It's government data, but USGS puts out monthly reports on silver and other metals.
@ricarpe: True, but I think of platinum as a blend between gold/silver and other commodities, such as oil. It's pretty inconvenient to buy/sell barrels of oil and the storage costs are very high. Platinum is more like gold/silver in this regard... it can be coined and could potentially be used as a commodity money, just like gold or silver. But you are right that it is not gold/silver because it hasn't actually ever been used as a money and stood the test of time, as those metals have. However, I would rather own oil right now than gold/silver because I think the latter are in a bubble among bubbles. As Marc Faber says "everything is in a bubble" but even amongst the bubbly commodities, gold/silver are in their own bubble. That leads me to the position that platinum is a uniquely attractive commodity. You shouldn't be holding platinum as "doomsday money", of course. Better to have some silver (or even cigarettes) for that. I'd rather have platinum than gold right now. I'll change back to gold after the bubble bursts.