Platinum - The Fundamentals

[wayneL]

I remember, once upon a time, when platinum was a far more precious metal than gold in terms of its price per ounce being close to twice the price of gold if I remember correctly.

We can all see that it's value has gradually diminished since those days, to the point now where it is roughly half the price of gold.

Why?

What were the fundamentals back then, what are the fundamentals now that make this so?

Should platinum be a part of an investor's precious metal portfolio, or not?

 

[Knobby22]

I am anti gold bug so I would never buy platinum either but from my perspective:

Platinum is used in catalytic convertors so that use is going to disappear but.. it is also used in hydrogen fuel cells and in contact lenses to cure the silicon so they are breathable. It's seems to be losing interest in the trinket (jewellery) market and supply often is more than demand.

It appears investment is a big use - or hoarding as I think of it.
Total demand in 2019 increased by 11% compared to 2018, from 7,270 to 8,060 koz, with the significant increase in investment demand more than offsetting lower automotive, jewellery and industrial demand.
https://platinuminvestment.com/supply-and-demand/platinum-quarterly

 

[houtman]

Bought some ETPMPT recently - a GlobalX Physical Platinum ETF.

Reasons being-

• Pt is currently in a supply deficit
• Many miners making a loss at current prices
• PHEV vehicle sales are growing more rapidly than forecast, PHEV's use about 10/15% more PGE's in their catalytic converters than an ICE vehicle.
• About 80% of production is in SA and Zimbabwe - country risk.

Using it as somewhere to park some cash for a while, away from the bright lights of silver and gold.

Here's a couple of articles.

https://www.cmegroup.com/education/articles-and-reports/substitution-among-platinum-group-metals.html

https://www.reuters.com/markets/commodities/hybrid-cars-throw-lifeline-platinum-metals-2024-09-09/

 

[finicky]

Using it as somewhere to park some cash for a while, away from the bright lights of silver and gold

Excellent thinking houtman