Platinum becomes less precious
Over the last few months, Platinum has lost its status as a metal extremely more precious than Gold. After much time at roughly double Gold’s price, Platinum has barely been able to stay above gold at all. As I write this, gold is at $883 per oz, and platinum at $941 – that’s less than a sixty dollar difference.
So what happened? Well, primarily the auto industry collapsed. The largest user of platinum group metals ( platinum, palladium, and even rhodium ) is the auto industry. All those cars need catalytic converters, and they all need platinum group metals. Once that demand falls through the floor, demand for PGM’s goes south in a big hurry. Couple that with a drop in all the metals’ prices, and you can see what happens.
All that being said, I think platinum has a bright long term future. Shorter term, gold and silver will fare better. But eventually, once we’re through this economic muck that we’re in, auto sales will pick back up, and PGM’s will be needed once again. When that happens, your platinum will begin to regain at least some of its former glory. If you can afford to hold, but cheap while you can.
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