Why Platinum is The Best Physical Precious Metal Investment Of Our Lifetime

[EE_]

This is where my stimulus check is going. 2 ounces soon


https://www.youtube.com/watch?v=2sOiiViNinY

[woodman]

I have been looking at platinum also. I think it is a great buy.

[Bigjon]

Catalytic converters in an electric car are buggy whips.

Had not thought about fuel cells.

Very logical good presentation.

[jcismylord]

Thank you EE_ for the link.

I still have my doubts - I wish someone has talked through the following points -

What gives value to platinum -

1. Automobile industry ( internal combustion ) is the predominant consumer

2. Industrials is the second ( the smaller ) consumer

There are two other platinum consumers that just parasite on the 1) and the 2) - those are jewelry demand and investment demand.
Those two category are not the root-cause or significant contributor to platinum valuation on the fundamental level, but rather a kind of overflow pools that to me feel more like derivatives - existence of these two is predicated by / dependent upon the 1) and the 2).

Some thoughts:

* With Tesla and other electrics emerging, the main support is getting knocked out and the entire complex of valuation may come crashing down.

To me it is similar to silver story, when silver got kicked out from major major use cases leaving huge piles of above-ground silver with no need for it and no use for it, causing decades of stinking low price valuations.
Those two "kick-outs" were - the world kicking out silver from being officially used in coinage and the second is when the silver got kicked out from photography.

* Palladium has very unique hydrogen-absorbing properties that Platinum does not have. Platinum CAN NOT be a substitute to Palladium in a lot of use cases. I was buying Palladium back in the day when it was cheap, because only Palladium ( NOT Platinum) has unique hydrogen properties ( and also because Russia had a huge pile of Pd and needed money ).

* Automotive does not use-up Platinum. In another words - Platinum is not getting irreversibly lost, it comes back intact through recycling. As such - if Tesla and electrcs come to dominate, then you can even shut down all Platinum mines and still you could have more above-ground Platinum available in recycling/investment/jewelry pools than the world will need for decades and decades.

Any thoughts ?

[mamboni]

Thank you EE_ for the link.

I still have my doubts - I wish someone has talked through the following points -

What gives value to platinum -

1. Automobile industry ( internal combustion ) is the predominant consumer

2. Industrials is the second ( the smaller ) consumer

There are two other platinum consumers that just parasite on the 1) and the 2) - those are jewelry demand and investment demand.
Those two category are not the root-cause or significant contributor to platinum valuation on the fundamental level, but rather a kind of overflow pools that to me feel more like derivatives - existence of these two is predicated by / dependent upon the 1) and the 2).

Some thoughts:

* With Tesla and other electrics emerging, the main support is getting knocked out and the entire complex of valuation may come crashing down.

To me it is similar to silver story, when silver got kicked out from major major use cases leaving huge piles of above-ground silver with no need for it and no use for it, causing decades of stinking low price valuations.
Those two "kick-outs" were - the world kicking out silver from being officially used in coinage and the second is when the silver got kicked out from photography.

* Palladium has very unique hydrogen-absorbing properties that Platinum does not have. Platinum CAN NOT be a substitute to Palladium in a lot of use cases. I was buying Palladium back in the day when it was cheap, because only Palladium ( NOT Platinum) has unique hydrogen properties ( and also because Russia had a huge pile of Pd and needed money ).

* Automotive does not use-up Platinum. In another words - Platinum is not getting irreversibly lost, it comes back intact through recycling. As such - if Tesla and electrcs come to dominate, then you can even shut down all Platinum mines and still you could have more above-ground Platinum available in recycling/investment/jewelry pools than the world will need for decades and decades.

Any thoughts ?Applying your logic to gold vis a vis platinum gold should be far cheaper than platinum. Platinum is more industrial than gold. Platinum is actually consumed by catalytic converters - only 50% is recovered. Platinum is far far more rare than gold. Platinum flow is less than 1/10 that of gold. Platinum stocks are tiny, about 8 million ounces, versus gold at over 5 billion ounces. Platinum is in deficit presently.

While platinum is needed for hydrogen fuel cells I have my doubts that it could ever be done economically. Hydrogen requires large energy input to produce and compressing and transporting hydrogen are major costs.

The fact is there are thousands of tons of gold lying around in bars. So in the absolute take away gold’s role as money and it becomes cheap. The same argument applies to silver and least of all platinum. Ultimately the price of anything is determined by the choice to hold by the masses of the population. Gold, silver and platinum are off the radar of 99% of people thanks to our corrupt dumbed down education system. If the people ever came to understand the real meaning of wealth preservation the prices of these metals would explode.

[ziero0]

A gold coin as small as 1/20th of an ounce can preserve your remedy at law. Or if you prefer go all in with paper and enjoy your foray into equity (aka 'not law').

[EE_]

One question I have not been able to find is what will the coming war possibly with China, Russia, NK, or Iran do to the price of metals.
That aside, with Rhodium approaching $30,000 and Palladium near $3,000, platinum must be being looked at to use more as a substitute.
Add to that the trillions of dollars being printed and a world of cash sloshing around, I expect investment demand to keep rising.

[mamboni]

One question I have not been able to find is what will the coming war possibly with China, Russia, NK, or Iran do to the price of metals.
That aside, with Rhodium approaching $30,000 and Palladium near $3,000, platinum must be being looked at to use more as a substitute.
Add to that the trillions of dollars being printed and a world of cash sloshing around, I expect investment demand to keep rising.Rhodium and palladium prices represent true supply-demand fundamentals. Platinum is still suppressed by paper derivatives as are gold and silver. In time, platinum will be liberated. It should be priced comparable to palladium.

[EE_]

Did You Know?
The Spaniards had first found the metal ‘platinum’ in Colombia, but they considered it as an unworthy component derived while mining silver. They named the metal ‘platina’, meaning ‘little silver’ and discarded it as impure. It was considered a nuisance in silver mining since it looked just like silver! The first written account of platinum was from Julius C Scaliger in 1557.

The metal platinum has the symbol ‘Pt’ and atomic number 78. It is one of the rarest elements in the Earth’s crust. It is also one of the densest, stable, and non-toxic metals. It is a good conductor of electricity. About 80% of the platinum, that is used worldwide, is found in South Africa. Russia is another leading producer of platinum. Only an ounce of platinum is obtained from 10 tons of ore. And only a few hundred tons are produced annually. Therefore, platinum is a valuable and precious metal.

What is Platinum Used for

There are innumerable uses of platinum and it’s impossible to describe all of them. Yet here is an attempt to describe the most common uses of platinum.

In Everyday Life
Platinum ring
✦ Being a ductile, malleable metal with silvery sheen, platinum is most commonly used in jewelry. Pure platinum is slightly harder than pure iron and hence does not wear out too soon. It is the least reactive precious metal and is known for its resistance to corrosion and tarnishing. Moreover, it does not oxidize at any temperature. Platinum is rightly labeled as a ‘noble metal’. Platinum and diamond earrings, finger rings, pendants, and bracelets are quite popular. Palladium, ruthenium, and iridium (the platinum group metals), and copper and cobalt are commonly alloyed with platinum to make jewelry. Statistics show that in 2010, 76 tons (about 31% of the platinum obtained) of platinum were used to make jewelry. Even the thinnest sections of platinum are strong and sturdy. They permanently retain their shapes, and thus, provide the best and safest setting for diamonds.

Platinum bars
✦ Being more precious than gold and silver, it is used for investments. Platinum bullions, coins, bars, and ingots are traded or collected.

✦ It is present in expensive watches.

In Industries
✦ It is mixed with cobalt to get a strong permanent magnet.

✦ The electrodes inside of glass are usually sealed with platinum, because its thermal coefficient of expansion is almost equal to that of glass.

✦ It is used in electrical contacts (low-voltage and low-energy contacts) and electrical resistance wires.

✦ Platinum is present in resistance thermometers, also called resistance temperature detectors (RTDs), which are widely used to measure industrial temperatures.

Turbine engine
✦ It is used in turbine engines.

✦ In powdered form, it is often used as a catalyst in chemical reactions. The platinum electrodes that are used for various processes in electrochemistry are coated with a layer of platinum black (Pt black or powdered platinum). The platinized platinum gives better results than platinum.

✦ Pt black is also used in self-lighting gas lamps, ovens, and stove burners.

✦ As an alloying agent, Pt is present in various metal products, for example, fine wires, non-corrosive laboratory containers, electrical contacts, and thermocouples.

✦ Platinum-based catalysts are used to manufacture nitric acid. As you know, nitric acid is the raw material for fertilizers and explosives.

✦ Platinum is used in the manufacture of specialty silicones (highly durable, waterproof, and electrically insulating materials) which are used in various ways, in everyday life. For example, for coating the back (removable) paper of sticky labels, for manufacturing the release paper upon which the prebaked goods are placed, etc.

✦ Manufacture of silicones, for e.g., water repellent coatings, high consistency rubbers, and liquid silicone rubbers, require platinum catalysts. Such silicon’s can be found in high voltage cable covers, construction sealants, furniture polishes, cleaning products, aero and automotive engine seals and gaskets, medical devices, and even in lipsticks and shampoos.

✦ Along with chemical, electrical, and electronic industries, platinum is also used by the petroleum, glass, and aircraft industries (it is used to coat missile nose cones, jet engine fuel nozzles, etc).

✦ It is used in thick and thin film circuits and in furnace components.

In Catalytic Converters
Catalytic converter
✦ Today, over 95 percent of all new vehicles come with catalytic converters. A catalytic converter helps convert over 90 percent of harmful elements like hydrocarbons, carbon monoxide, and oxides of nitrogen from gasoline engines into less harmful carbon dioxide, nitrogen, and water vapor. When fitted in diesel engines, a catalytic converter converts over 90 percent of hydrocarbons, carbon monoxide, and particulate matter (which contains cancer-causing compounds) into carbon dioxide and water vapor. Records show that 113 tons (about 46% of the platinum mined) of platinum were used to make catalytic converters in 2002.

In Medical Field
✦ Some platinum compounds, mostly ‘cisplatin’, are used in chemotherapy medication to treat certain types of cancer.

✦ Platinum is present in many laboratory equipment.

Dental prosthesis
✦ It is used in dental prostheses and various medical and surgical equipment.

✦ In laboratories, platinum pans and supports are used in thermogravimetric analysis.

✦ Pt works as a catalyst in the manufacturing processes of silicone rubber and gel components of several types of medical implants (breast implants, joint replacement prosthetics, artificial lumbar discs, vascular access ports, etc.). The FDA has approved the use of platinum in these products, as it hasn’t found any evidence suggesting toxicity.

✦ A platinum-osmium alloy is used in implants such as pacemakers and replacement valves.

✦ Silicon’s are used in medical elastomers. When they are used for wound healing, they stick only to the dry skin. As they don’t stick to the wound, they don’t damage it. They allow air and moisture to pass through them. So, they are considered as the best elastomers for wound healing.

In Electronics
Oxygen sensor
✦ Platinum is used in an oxygen sensor, an electronic device that helps measure the proportion of oxygen in the given gas or liquid.

Platinum hard drive
✦ Computer hard disks contain platinum in the magnetic layers. As you know, hard disk drives are now present in televisions, games consoles, and other home entertainment systems. Use of platinum has helped reduce the disk size. It has also led to improved data-storing capacity.

✦ Platinum is present in the optical fibers and liquid crystal display glass, especially in laptops.

✦ Platinum crucibles are used to make semiconductor crystals for lasers.

In Mobile Phones
Cell phone circuit
✦ Platinum in used in cell phone circuits. It is used in the fuel cells which can replace batteries.

✦ According to the available statistics, 1 metric ton of obsolete cell phones (exclusive of batteries) contains about 140 kilograms of copper, 3.14 kilograms of silver, 300 grams of gold, 130 grams of palladium, and 3 grams of platinum. 130 million cell phones that are discarded annually in the United States, may weigh about 14,000 metric tons. About 0.04 metric tons of platinum (value – more than $1 million) can be obtained from them.

✦ Each iPhone 5, for example, contains $1.58 of gold, $.36 of silver, $.05 of platinum, and $.12 of copper. These numbers may appear small but collectively large quantities of precious metals end up in landfills. Thus, cell phone recycling can help conserve these limited natural resources.

In Cars
✦ The platinum coated auto-catalysts help control the harmful emissions that your vehicle makes. Manufacturers are busy designing advanced auto-catalysts for gasoline/diesel cars, and also for heavy trucks and buses. As the number of vehicles on the road is increasing continuously, air-pollution has become an environmental problem of public concern.

Spark plugs
✦ It is used in spark plugs.

✦ It is present in automotive airbag coatings. Silicone protects the nylon bag from an explosion. The platinum-cured systems are long-lasting and stable. They can be folded up for years without erosion.

✦ Proton exchange membrane (PEM) fuel cells which contain platinum catalysts are commonly used in power automobiles. They are also used to generate power for buildings. The fuel cells generate power quickly and silently with the help of oxygen and hydrogen. They emit only pure water as a by-product. Thus, they do not lead to air and noise pollution.

It is estimated that one-fifth of everything we use either contains platinum or requires platinum in its manufacture. Like gold, copper, and other metals, platinum also has limited resources that will be exhausted in a few years, based on the escalating demand for the metal.

https://sciencestruck.com/common-uses-of-platinum

[Hitch]

This is where my stimulus check is going. 2 ounces soon

EE, uh blessings, but how in the heck are you getting a stimulus check?!?

Me, single white man, not going to see dime of the stimulus check. I like the info on platinum though! Cheers!

[jcismylord]

Applying your logic to gold The same logic can not be applied to gold, Doc, cause gold has retained its monetary use case. Sovereign nations trade in gold, central banks hold reserves in gold and not in silver and platinum.

[mamboni]

The same logic can not be applied to gold, Doc, cause gold has retained its monetary use case. Sovereign nations trade in gold, central banks hold reserves in gold and not in silver and platinum.No. Gold is held by central banks but has no legal or statutory linkage or backing to sovereign currencies. Gold is a monetary fig leaf and invisible to the large majority. If gold had a true monetary linkage, it woyld be many multiples of today's price. The elite could push the gold price down as low as they wish. They don't dare because insiders scoop up physical gold on every price dip. The smart money has been accumulating gold since 2000. At $1740, gold is still severely undervalued. Silver price of spot $26 is even more absurdly low.

[jcismylord]

Did You Know?
The Spaniards had first found the metal ‘platinum’ in Colombia, but they considered it as an unworthy component derived while mining silver. They named the metal ‘platina’, meaning ‘little silver’ and discarded it as impure. It was considered a nuisance in silver mining since it looked just like silver! The first written account of platinum was from Julius C Scaliger in 1557.


North of NYC there is small town called Newport, RI.

The town use to be a summer residence of many New York billionaires of the old-time USA.

There are still a lot of mansions left, even today - many are open for the public to visit.

So, years ago I went up and visited.

Listened to the stories.

The walls of one of the mansions, I remember, were covered with some kind of metal - they always assumed that it was silver.

Then they got suspicious, cause it never tarnished.

So, - they made a test - it was platinum.

There are butt loads of platinum in that house even today. I guess it was not so precious those old days.

[jcismylord]

No. Gold is held by central banks but has no legal or statutory linkage or backing to sovereign currencies. Gold is a monetary fig leaf and invisible to the large majority. If gold had a true monetary linkage, it woyld be many multiples of today's price. The elite could push the gold price down as low as they wish. They don't dare because insiders scoop up physical gold on every price dip. The smart money has been accumulating gold since 2000. At $1740, gold is still severely undervalued. Silver price of spot $26 is even more absurdly low.

Doc - Russia, China, and good old USA hoard gold.
They don't hoard silver and platinum.
Please sit down and grok the difference.
Perhaps you need to meditate on this fact for a day or two before posting that gold, platinum and silver must be subjected to the SAME rules and the same "logic".
I don't want to fight you man. :)

[mamboni]

Doc - Russia, China, and good old USA hoard gold.
They don't hoard silver and platinum.
Please sit down and grok the difference.
Perhaps you need to meditate on this fact for a day or two before posting that gold, platinum and silver must be subjected to the SAME rules and the same "logic".
I don't want to fight you man. :)We are arguing over a non-issue. Of course nations hoard gold. These same nations use every means to disparage gold. They know that gold is money. They want the unwashed masses to believe the opposite. My point is, of all the precious metals, gold is intrinsically the least valuable - there are vast hordes of gold sitting idle. The same cannot be said for silver or platinum. BTW, I for one don't believe the US has 8000 tons of gold. After studying the mentality and immorality of Wall Street and our politicians, there can be no doubt that that gold is long gone, leased out and rehypothecated over 100 fold.

[ziero0]

Gold is portable soil. Platinum is not.