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Platinum price variance


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Can't help but notice that, whilst silver & gold live spot prices are pretty much consistent amongst dealers, platinum seems to have a huge variance on this site.

As i'm typing, the TSF banner is showing £756 / ounce whilst the other major dealers are showing £820- £825. Is there a reason for this ? 

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I've noticed the same over the past few weeks or so, and think that whatever is driving the price updating for platinum on this site must have a bug in it of some description.  Certainly the prices of platinum coins/bars on the dealers' sites are consistent with the higher price (£820 or so rather than £755 or so), and so is the price of my ETF investing in platinum (SPLT).

So in summary: the current price of platinum does appear to be significantly higher than is shown here.  Good news if you already hold platinum, less so if you are looking to buy!

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Margins on platinum are way too high when compared to gold.
In addition VAT at 20% on top of spot + VAT on the margin.
Some will say it is supply and demand but that falls flat on its face when you get a lousy buy price from dealers.
If a dealer paid 98% spot and sold with 5% markup over spot the platinum would turn over the same day.
My conclusion is profiteering because you can.

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7 hours ago, TeaTime said:

Can't help but notice that, whilst silver & gold live spot prices are pretty much consistent amongst dealers, platinum seems to have a huge variance on this site.

As i'm typing, the TSF banner is showing £756 / ounce whilst the other major dealers are showing £820- £825. Is there a reason for this ? 

The buy price for spot platinum is around $1035 - so let's round that up to a round £830. This is the spot market buy price.
If one were to give the mint / dealer / transport blah blah premium 10% that would make it £913.
That with VAT at 20% on top that makes it £1095.

i see the price of new 1 oz Royal Mint platinum Britannia is £1,087.55 - (£906.29 ex VAT)
https://www.chards.co.uk/2022-platinum-britannia-one-ounce-bullion-coin/15941

So the mint / dealer / transport blah blah premium before VAT = £906.26 - £830.00 = £76.26 which is £76.26 / £830.00 - a 9.1% premium.

i don't know what the dealer's cost is in hand but it would not surprise me if Chard were making about 5% premium. It doesn't look like our Blackpool friend is making a big profit margin on these new coins. i have a few platinum coins but compared with gold and silver it a non event. From my experience the volumes just aren't there is platinum and in palladium i suspect they are almost non existent. That isn't an environment to make money.
Perhaps @LawrenceChard would like to comment.

Disclaimer: Everything I post is for entertainment purposes only - it is not to be taken seriously. There is no intent to incite violence or hate of any kind, nor do I have any intent to incite any other crime or non-crime in any country in the world. It is not my intent to slander, harass or defame anyone dead or alive. 

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7 hours ago, TeaTime said:

Can't help but notice that, whilst silver & gold live spot prices are pretty much consistent amongst dealers, platinum seems to have a huge variance on this site.

As i'm typing, the TSF banner is showing £756 / ounce whilst the other major dealers are showing £820- £825. Is there a reason for this ? 

It's probably mainly down to some latency or caching in the different price feeds. As platinum is dealet in far lower volume and frequencies, it probably doesn't get noticed and corrected as quickly as gold or silver.

My TSF price feed shows in USD, so currently PLATINUM  947.11 USD. I have not tried to convert it into GBP or compare.

Probably worth you tagging in an Admin, so there are aware.

56 minutes ago, Pete said:

Margins on platinum are way too high when compared to gold.
In addition VAT at 20% on top of spot + VAT on the margin.
Some will say it is supply and demand but that falls flat on its face when you get a lousy buy price from dealers.
If a dealer paid 98% spot and sold with 5% markup over spot the platinum would turn over the same day.
My conclusion is profiteering because you can.

I have mentioned, many times, that platinum is more expensive to process, for refiners, mints, etc.

It also get traded in much lower volumes, so commodity market spreads are almost certainly higher, although I have not checked.

@ChardsCoinandBullionDealer would snatch your hand off for any secondary market, special scheme platinum bullion or collectable, at 100% of intrinsic.

As we don't get enough of it, we would not aim to turn it over same day. Would you sell plat at 5% premium.

I don't think I could persuade Rishi to abolish the VAT on platinum and silver, but I feel sure that if he or his wife was investing in platinum, they would do so for offshore storage, and legally avoid the VAT.

😎

Chards

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17 minutes ago, sixgun said:

The buy price for spot platinum is around $1035 - so let's round that up to a round £830. This is the spot market buy price.
If one were to give the mint / dealer / transport blah blah premium 10% that would make it £913.
That with VAT at 20% on top that makes it £1095.

i see the price of new 1 oz Royal Mint platinum Britannia is £1,087.55 - (£906.29 ex VAT)
https://www.chards.co.uk/2022-platinum-britannia-one-ounce-bullion-coin/15941

So the mint / dealer / transport blah blah premium before VAT = £906.26 - £830.00 = £76.26 which is £76.26 / £830.00 - a 9.1% premium.

i don't know what the dealer's cost is in hand but it would not surprise me if Chard were making about 5% premium. It doesn't look like our Blackpool friend is making a big profit margin on these new coins. i have a few platinum coins but compared with gold and silver it a non event. From my experience the volumes just aren't there is platinum and in palladium i suspect they are almost non existent. That isn't an environment to make money.
Perhaps @LawrenceChard would like to comment.

"...but it would not surprise me if Chard were making about 5% premium. 

premium margin!

"It doesn't look like our Blackpool friend is making a big profit margin on these new coins."

Thanks, certainly not when considering the Minimum Order Quantities, and VAT slowing UK and EU sales.

Platinum is cheap compared with Gold though.

😎

Chards

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41 minutes ago, LawrenceChard said:

"...but it would not surprise me if Chard were making about 5% premium. 

premium margin!

"It doesn't look like our Blackpool friend is making a big profit margin on these new coins."

Thanks, certainly not when considering the Minimum Order Quantities, and VAT slowing UK and EU sales.

Platinum is cheap compared with Gold though.

😎

your margin is our premium.

Edited by sixgun

Disclaimer: Everything I post is for entertainment purposes only - it is not to be taken seriously. There is no intent to incite violence or hate of any kind, nor do I have any intent to incite any other crime or non-crime in any country in the world. It is not my intent to slander, harass or defame anyone dead or alive. 

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6 minutes ago, LawrenceChard said:

I disagree.

If I / we pay 5% premium from the Mint, and sell at 10 premium, our margin is (about) 5%, but the premium you pay is 10%.

A lot of people conflate premium, margin, and spread.

Perhaps i should have said your margin is part of our premium. 

Disclaimer: Everything I post is for entertainment purposes only - it is not to be taken seriously. There is no intent to incite violence or hate of any kind, nor do I have any intent to incite any other crime or non-crime in any country in the world. It is not my intent to slander, harass or defame anyone dead or alive. 

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3 hours ago, Pete said:

Margins on platinum are way too high when compared to gold.
In addition VAT at 20% on top of spot + VAT on the margin.
Some will say it is supply and demand but that falls flat on its face when you get a lousy buy price from dealers.
If a dealer paid 98% spot and sold with 5% markup over spot the platinum would turn over the same day.
My conclusion is profiteering because you can.

But margin/spread on PT is generally much lower than Silver

"It might make sense just to get some in case it catches on"  - Satoshi Nakamoto 2009

"Its going to Zero" - Peter Schiff 2013

"$1,000,000,000 by 2050"  - Fidelity 2024

 

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