Platinum fundamentals

[Skirnir_]

I am considering buying platinum to diversify my current portfolio (rougly 310oz Ag : 1oz Au). It looks particularly appealing because of its favourable ratio to gold, making it a possible value investment.

Save for a few Tsarist Russian coins, it is not a monetary metal and is thus on the 'industrial' end of the industrial-monetary continuum of metals. Therefore, what are the fundamentals for platinum? I'm curious about above-ground supplies, production by country, and industrial application.

Finally, I understand that silver has taken the biggest hit %-wise, so would it be more attractive at this point? Thanks for your help.

[chad]

pgm metals are here because of comets hitting the earth. zero were made here. that's some good fundamentals.

[Skirnir_]

pgm metals are here because of comets hitting the earth. zero were made here. that's some good fundamentals.

Interesting datum, though I am more concerned about above-ground supply and demand.

[gunDriller]

the primary industrial application i am aware of is Cat converters, which are used on cars with internal combustion engines in countries with air pollution laws that require Cat converters.

http://www.platinum.matthey.com/applications/industrial-applications/

http://www.platinum.matthey.com/applications/

http://www.platinum.matthey.com/media-room/photo-library/industrial/

Lists of industrial applications.

OH YEAH, platinum oxide on hard drive platters - and fuel cells.


the main thing i notice about Platinum is that - the buy-sell spreads suck, compared to Gold & Silver.

[Skirnir_]

In the most recent FSN, Jeff Christian recommended palladium first, platinum second, gold third, and predicts silver to go down to 20-22. I am considering dumping Ag and buying Pd and Pt on today's Ag strength.

[DMac]

While I like a little Pd and Pt for diversification but remember that they are on the coat tails of Gold and Silver. As the economy implodes more they will be less needed by industry. I see spikes if major wars break out because guidance systems use a lot of platinum (silver as well).

Very speculative play whereas G&S are savings vehicles.

Edit to add - I'd add more gold if I were you.