Inflation Adjusted Platinum Price @ 50 Year Low

[WorkingClassMan]

30 years ago I noticed that the inflation adjusted gold price was close to a 50 year low of $350 per ounce and so I began to purchase a little gold each month. Over the next decade I purchased gold each month...as the price dropped to $325 then $300 then $275 then $250...as the price of gold fell I continued to buy. Today I own a lot of gold and my average cost basis is around $300 per oz (my inflation adjusted cost basis is around $600 per oz)

A couple of years ago when the inflation adjusted platinum price come close to a 50 year low of $900 per ounce, I began to purchase some platinum each month. I have continued to purchase platinum each month even as the price dropped to $800 then $700.

In my opinion now is a great time to slowly invest in physical platinum

[ifionlyhadsomegold]

Pt is a screaming deal today if you can find any. Will it go lower? Unlikely but if it does I will be adding more.

[motocat]

Pt is a screaming deal today if you can find any. Will it go lower? Unlikely but if it does I will be adding more.

It was at under $600 an ounce at the bottom in March, I backed up my digital "truck" then, only time I have used that expression. That will not happen again. Now I'm just waiting and looking to convert into physical plat. (Got a few AGE's, but looking for more at $100 of less over spot). My last paper PT purchase was at $732, it may go lower then that shall people panic again and realize how bad this COVID-19 stoppage will hurt the economy, however I highly doubt ever under $660 again. Real bullion platinum is another matter, doubt we will see that much lower.

[motocat]

This thread was started over three years ago, and the fiat price of platinum has gone nowhere. Heck, look at the 20 year chart: https://www.bullionbypost.com/platin...ar/ounces/USD/

For 20 years, aside from a few peaks in 2008 and 2011 - it's remained relatively flat in fiat dollar worth. What that means, given inflation over these last 20 years, is that platinum is actually getting worth less and less, like the dollar.

Why is this? Has less and less platinum been needed in these 20 years, and/or is the mining of platinum becoming less costly, perhaps new discovery?

Nobody here likes to discuss the long term decline of a PM, but that is what has happened to platinum, might as well have been holding physical cash instead of Pt.

20 years is a long time for an investment to pay off. Will platinum continue to decline in real value, will it catch up with inflation (that left it way behind in these 20 years)? Platinum to gold ratio is now 2.3 to 1. Very bad, the worst I've ever seen it. Though one must wonder, maybe a very good time to trade gold for platinum -- or maybe not, given the "to zero" direction it has been moving??

[brutus2]

This thread was started over three years ago, and the fiat price of platinum has gone nowhere. Heck, look at the 20 year chart: https://www.bullionbypost.com/platin...ar/ounces/USD/

For 20 years, aside from a few peaks in 2008 and 2011 - it's remained relatively flat in fiat dollar worth. What that means, given inflation over these last 20 years, is that platinum is actually getting worth less and less, like the dollar.

Why is this? Has less and less platinum been needed in these 20 years, and/or is the mining of platinum becoming less costly, perhaps new discovery?

Nobody here likes to discuss the long term decline of a PM, but that is what has happened to platinum, might as well have been holding physical cash instead of Pt.

20 years is a long time for an investment to pay off. Will platinum continue to decline in real value, will it catch up with inflation (that left it way behind in these 20 years)? Platinum to gold ratio is now 2.3 to 1. Very bad, the worst I've ever seen it. Though one must wonder, maybe a very good time to trade gold for platinum -- or maybe not, given the "to zero" direction it has been moving??

The risk vs reward certainly seems good. I have been eyeballing Sibanye-Stillwater again recently at sub 5$. I would rather buy the bullion but I dislike the spread.

It is puzzling as I would assume it is well under its AISC cost to mine and has been for a while. I would welcome any comments also, as I certainly have no expertise in this.

[yellowsnow]

The risk vs reward certainly seems good. I have been eyeballing Sibanye-Stillwater again recently at sub 5$. I would rather buy the bullion but I dislike the spread.

It is puzzling as I would assume it is well under its AISC cost to mine and has been for a while. I would welcome any comments also, as I certainly have no expertise in this.

agreed. current Pt spot is attractive in USD but in CAD, i have to pay 1.4X more.
Also, like u said, the platinum spread is still too high for my taste.

[motocat]

I would rather buy the bullion but I dislike the spread.

If you shop around, you will find Platinum bullion with a lower premium (percentage), than silver. Last I checked, the spread was also lower than with silver in Kitco's own metals pool.

That said, I've grown tired of waiting for platinum to make profit, I'll keep what I have but not getting much more, even at current gold to platinum ratio. Which mean - it's time to buy!

(Though given how long they say hydrogen fuel cells will become more commonplace - that is the late 2030's, you may need to wait another 15 years!)

[researcher]

I started investing in platinum few weeks ago at a gold-platinum ratio 2.23 to 1. In 2005 gold was 400, platinum 1000, now it is the other way around.

Cost of platinum production now is about the same as the price, so I converted a small amount of gold into platinum, as I expect platinum price to keep up with inflation from now onwards.
There is a reported 1000000 ounce deficit this year, however, there is above ground stock, so I have no high expectations in the short run.