Where's Platinum Heading ?

[LawrenceChard]

On 02/04/2021 at 13:14, Pete said:

I keep checking Platinum for an opportunity to add some but when I look at this chart I get kind of nervous as no-one knows what is on the righthand side ...
 

If you come across anyone who does know what is on the right-hand side, let me know, we can offer him/her a great job as an analyst, with fabulous bonuses, and free holidays in my Monaco mansion (which I have not bought yet), or my $1 billion superyacht (ditto).

On a more serious note, try looking at a 20 or 30 year chart, if you can find one.

Also look at the Gold:Platinum ratio. For most of the time I can remember, back to the 1960s, platinum tended to be priced higher than gold, on anerage by about 5% to 10%. Since 2011, platinum has been lower than gold. So, before 2011, most of the time Gold:Platinum was less than 1.000

Currently it is 1.432; about a year ago, it was briefly as high as 2.20 at which platinum was ridiculously cheap compared with gold.

My medium/long term "target" for it is 1.000 again, although I would probably go "neutral" when it get to about 1.100

In other words, I expect platinum to be close to parity with gold.

[LawrenceChard]

On 08/04/2019 at 17:56, HawkHybrid said:

 

HH

What's palldium?

[LawrenceChard]

On 08/04/2019 at 19:25, vand said:

What goes down must come up

Not necessarily.

For example 

https://en.wikipedia.org/wiki/Hindenburg_disaster

Boeing 737 Max series.

[LawrenceChard]

On 02/04/2021 at 13:53, Spark268 said:

There's a reason why both the Gold and Plat brit's both have a nominal value of £100.

Sure, the Royal Mint needed to think of a number.

It harldy mattered what number, as long as the face value was never likely to exceed the intrinsic.

Don't read too much into both nominal values being £100.

You could try asking the RM, but I doubt anybody there actually knows why, and if they did, they probably would not tell you.

[27carrots]

anyone manage to sell the rip today?

 

[LawrenceChard]

On 08/04/2021 at 15:21, LawrenceChard said:

Sure, the Royal Mint needed to think of a number.

It harldy mattered what number, as long as the face value was never likely to exceed the intrinsic.

Don't read too much into both nominal values being £100.

You could try asking the RM, but I doubt anybody there actually knows why, and if they did, they probably would not tell you.

I just read this, and thought "that was an excellent answer", before I looked at who wrote it!

🙂

[Spark268]

27 minutes ago, LawrenceChard said:

I just read this, and thought "that was an excellent answer", before I looked at who wrote it!

🙂

haha

the original point was the nominal values of coinage does hint towards to equality in the values of gold and platinum, particularly when you look at times when these coins where legal tender...e.g. 19th century Russia had Platinum and Gold rubles (i think the where worth the same, if not platinum slightly more). Its only very recently that there's a substantial discount of platinum versus gold.

[LawrenceChard]

2 hours ago, Spark268 said:

haha

the original point was the nominal values of coinage does hint towards to equality in the values of gold and platinum, particularly when you look at times when these coins where legal tender...e.g. 19th century Russia had Platinum and Gold rubles (i think the where worth the same, if not platinum slightly more). Its only very recently that there's a substantial discount of platinum versus gold.

That theory was flawed.

Before people started finding valuable uses for platinum, it was almost considered as a useless by product, and its value was less then gold.

This explains why fake platinum sovereigns exist, see:

https://www.chards.co.uk/blog/fakes-forgeries-and-counterfeit-gold-coins-and-sovereigns/167

Platinum Forgeries

Between the 1860's and about 1881, platinum was used, in Spain, to counterfeit gold coins including sovereigns. These were apparently made to order for a North American, the coins being mainly destined for use in South America. Although platinum is denser than gold, by alloying it with an appropriate amount of copper, it can be brought to the correct density. It was then gold plated, and apparently made very effective counterfeits. The practice is believed to have stopped only because the price of platinum rose to an uneconomic level. It is likely that the fakes would be worth more now than the originals. Platinum fake sovereigns have been recorded of shield sovereigns dated between 1861 and 1872.

[Spark268]

ahh the syrian fakes 😛 Interesting article !

on the other side of the coin, pun fully intended, wasn't there prolonged periods of time where these fakes were worth more than the real thing ?

 

Edited June 10, 2021 by Spark268