Issues with Selling Platinum

[DrakeSavory]

During the recent price slump I bought an ounce of platinum.  I hear the youtube content providers say there are issues when reselling platinum.  This ranges from few people or LCS's willing to buy (but in my area that does not seem to be an issue) to not getting back the huge premium platinum command to even having to sell below spot.

 

Has anyone faced these issues or others when selling their platinum?

[Platinum]

It is just like Gold and Silver, if you paid a high premium then that might be hard to recuperate. It will probably help your chances of getting the premium back if you sell the platinum when there is a hype/shortage of it. 

[DrakeSavory]

That's my thought Platinum.  The history of PMs are strange even going back to the 1970s.  When prices are low no one wants it and when prices are high everyone wants it.  I figure if Pt blows up then I'll get most of my premium back.

[DrakeSavory]

Looks like I bought in at the right time.  I was hoping to get a second ounce with my tax refund but at least I got one while prices were low.

[RacerCool]

On 06/03/2020 at 11:30, DrakeSavory said:

Looks like I bought in at the right time.  I was hoping to get a second ounce with my tax refund but at least I got one while prices were low.

I started to get on the platinum hype train, then realized that if I'm going to be buying something significantly more pricey than silver, it should gold. At least that's what I feel better about.

I kept an eye on spot price, and when it went above what I paid for the one coin I bought, I sold it for a modest profit. Then I bought a gold coin.

[DrakeSavory]

Platinum has a good floor at $900.  It has a high premium but I figure 2 ounces would be good to have in case the PtAu ratio gets out of this inversion.  Plus platinum is so useful in industry that I'm willing to bet that there will be some new use to it in the future and the price will explode.  Look what happened to palladium the weeks after the Pons-Fleischmann announcement of cold fusion.

But you're right.  The premium is a barrier to platinum stacking.  But the thing is gold seems overpriced right now.

[Pete]

Crazy that Platinum is half the price of gold or thereabouts.
Buying any right now is difficult and those with limited stock are asking far too high a premium.
I think a fair price is 12% over spot but finding that on the low's is near impossible.
 

[Uksilverstackers]

7 hours ago, Pete said:

Crazy that Platinum is half the price of gold or thereabouts.
Buying any right now is difficult and those with limited stock are asking far too high a premium.
I think a fair price is 12% over spot but finding that on the low's is near impossible.
 

Looking at € prices off shore and here last week there was only a £40 difference inc VAT and RM had stock.

You prompted me to look at RM Queens Beasts and noted the following that I had a screenshot of a Lion (Using RM Spot Prices to nearest £ and ex VAT)

24 July 2018                                  22 March 2020

Spot Buy Price £634                             £510

Spot Sell Price: £637                            £542

QB Lion Price - £799                             £688

The Spot buy/sell spread is a huge difference now.

 

edit: 24 July 18 was a Tuesday and not a Sunday in an uncertain market. Could be why spread is large.

[Pete]

56 minutes ago, Uksilverstackers said:

Looking at € prices off shore and here last week there was only a £40 difference inc VAT and RM had stock.

You prompted me to look at RM Queens Beasts and noted the following that I had a screenshot of a Lion (Using RM Spot Prices to nearest £ and ex VAT)

24 July 2018                                  22 March 2020

Spot Buy Price £634                             £510

Spot Sell Price: £637                            £542

QB Lion Price - £799                             £688

The buy/sell spread is a huge difference now.

 

edit: 24 July 18 was a Tuesday and not a Sunday in an uncertain market. Could be why spread is large.

I also checked the RM bullion website.
The top right corner is merely showing the market buy and sell rates not the actual numbers you and I would get.
I entered on the RM website a one ounce platinum coin to sell them and was quoted £459.82

Also when you see the prices on the RM website you need to add 20% VAT for platinum.
So if you buy a Lion costing £688 + VAT = £825 then sell it back the same day you'll loose £365 instantly.

 

[Stuntman]

A Lion is probably the wrong example to use, because it has an element of numismatic premium in the buying price, and this has increased in the buying price since July 2018.

A better example would be to compare a 2018 platinum Britannia with its 2020 equivalent.

But in any event, Platinum is cheap and I'm buying to hold, despite the premiums and the VAT.  In fact I have two QB 1 oz winging and galloping their way to me.

[Uksilverstackers]

4 hours ago, Stuntman said:

A Lion is probably the wrong example to use, because it has an element of numismatic premium in the buying price, and this has increased in the buying price since July 2018.

A better example would be to compare a 2018 platinum Britannia with its 2020 equivalent.

Unfortunately I didnt have any previous pricing details other than the Lion for comparison.