Considered switching to platinum but thought again.

[MickB]

As I've been buying a 24 carat 1/4 oz gold coin per month for my pension for well over a year now at a reasonable price, I was considering switching to buying a 1/4 oz platinum per month instead due to the rise in the gold price.

This would keep my purchases at near the same price as before the latest rise but the vat killed that idea.

Either I cut back on silver to make up for a 1/4 oz gold every month or I buy smaller coins.

It looks like the latest price rise will be around for a while so maybe sovereigns instead would be a better idea. Problem is that I either get sucked into spending more money, something that my wife won't like or I settle for less gold in the long run.

Which would be the best way to go? My missus would rather I stopped buying and spent it on the house instead, fair point but I'm hooked on this addiction. 

[HelpingHands]

If you want Pt then maybe it's best to pick up old rings/bands.  You'd need to check up the purity though but there is a minimum % before Platinum is stamped (can't remember of the top of my head, maybe .750)

For coins you'd need to find someone to ship from the US but even the fractional has a fair premium over there I think.

I did consider getting some tenths to flip but I couldn't make it worth while.

[MickB]

@HelpingHands fractional platinum coins are hard to get hold of here although bars are easier to obtain. Don't really want to get into bars of platinum though.

Is the vat on plat cheaper in the EU than the UK?

[Stu]

Tough call buddy, I bought  one day pre Brexit vote but doubt I will be buying much in the near future. This month I have been stacking coal for the long winter months. ? Have you considered palladium? You can get an Oz from bairds for £600, may have to save a few months but could be a healthy novel purchase. 

[HelpingHands]

I haven't seen that much for sale in the EU but I think the rates in most countries are within a few percentage points.

If you look at ebay in Europe you may see the Pt koalas sometimes but I haven't seen any bargains.

[MickB]

@StuI never thought of palladium coins, I'll have to think about that and find out is it easy to sell on later, i.e; when I come up to retiring in twenty odd years time. Maybe the time is right now to buy it!

8 minutes ago, HelpingHands said:

I haven't seen that much for sale in the EU but I think the rates in most countries are within a few percentage points.

If you look at ebay in Europe you may see the Pt koalas sometimes but I haven't seen any bargains.

Just looked at Coininvest & it's at 20%. Same as the UK

[KDave]

Platinum is a different beast, not really comparable to gold. Perhaps to silver somewhat, but more on the industrial side without as much investor demand, and linked to a limited number of industries (Car manufacturing mainly). This is an important factor in your decision, more so than the cost imo. Don't get me wrong, I think PGM's are very good investments long term for a number of reasons and own exposure to them to a small degree.

I would love a selection of physical Platinum group metals but the premiums are crazy high even on the bars due mostly to VAT. If you want exposure to platinum or its brothers then logically its paper or it becomes potentially a very long term bet. That is how I do it at the moment, but I have recently had my engagement in this method shaken some what.

Honestly seeing what has happened to silver recently, now in profit on the physical despite high (to me anyway) premiums above spot when I bought, makes me think high premium physical PGM's may not such a bad idea after all. Especially given I am in the same boat as you with potentially decades before retirement. 

Its a gamble, but then so is everything. I am confident PGM's are a good long term bet which is why I invest a small amount in ETF's for Platinum and Palladium. I may just sell these and buy physical, and get some rhodium from Bairds for good measure. The only physical PGM's I currently own are being put to good use in the car exhaust. 

[Frost]

as for me, i think it's always good to have everything, 5-gold:3-silver:1-palladium:1-platinum. You never know...