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    Platinum - undervalued or just a shiny rock?

    J
    Key Takeaways
    • Been seeing a lot of chatter lately about platinum and wondering what the general consensus is here.
    • With everything going on, feel like there's some real potential, but also a good chunk of risk, especially compared to the old standbys.
    • My Gold IRA alone is pushing 7 figures, so I pay attention to anything that glitters.
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    Been seeing a lot of chatter lately about platinum and wondering what the general consensus is here. With everything going on, feel like there's some real potential, but also a good chunk of risk, especially compared to the old standbys. I'm a heavy metal guy, always have been since my Wall Street days – gold and silver make up a significant portion of my portfolio, usually swinging between 15-25% depending on the market vibes. My Gold IRA alone is pushing 7 figures, so I pay attention to anything that glitters.

    Platinum's been lagging, no doubt about it. I remember back in '08 when it was trading higher than gold for a bit, crazy times. Now it’s practically a bargain basement find in comparison. Part of me, the old trader in me, sees that gap and thinks "opportunity." Industrial demand could pick up, especially if the whole green energy push actually gains some serious traction. But then the other part of me, the part that's enjoying retirement in my Tribeca condo, thinks about the volatility and wonders if it’s just a shiny rock waiting to get trampled.

    My broker's been hinting at adding some platinum to diversify the metals exposure, maybe a 5% allocation at most, but it feels like a swing for the fences. I'm talking about taking a chunk out of my gold holdings, potentially, or maybe some of the cash I’ve been sitting on from my last venture capital exit. What are you all seeing out there? Anyone making big moves into platinum right now, or is everyone sticking with the more traditional hedges?

    Curious about the technicals and fundamental arguments people are hanging their hats on. Let me know your thoughts.

    25
    5 comments

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    Best Answer▲ 7 upvotes
    B
    betty_king📊Growing (50-100k)

    Great question! Platinum can definitely be a bit of a head-scratcher. One thing I always encourage people to look at with platinum (and palladium too, for that matter) is its industrial demand. Unlike gold, which is primarily a monetary metal, platinum's price is heavily influenced by things like catalytic converters and other manufacturing uses.

    For a good overview that breaks down some of the supply/demand dynamics, I found this article from Kitco helpful: https://www.kitco.com/ind/kitco.gold.platinum.html. It might give you some additional angles to consider!

    Comments (5)

    6
    elizabeth_johnson💰Established (100-250k)Real Investor✓ Verifiedless than a minute ago

    Haha, "shiny rock" made me chuckle. I actually dipped my toes into platinum a few years back after hearing similar chatter. My thought process was, "it's rarer than gold, so *surely* it'll catch up eventually, right?"

    Well, let's just say it's been a very slow catch-up, if you can even call it that. Definitely a different beast than gold or silver, and the industrial demand rollercoaster is real. Curious to hear what others think about its long-term prospects now.

    1
    donna_rogers🏆Advanced (250-500k)Real Investorless than a minute ago

    Interesting thought on platinum. You mentioned "everything going on" – what specific factors are you thinking of that make platinum look potentially undervalued right now?

    3
    joseph_harris📊Growing (50-100k)less than a minute ago

    Interesting take. I've always viewed platinum as a bit of a niche play, more tied to industrial demand than the safe-haven appeal of gold. While there's definitely a case to be made for its undervaluation, especially historically against gold, it also lacks that universal "crisis metal" sentiment that keeps gold buoyant even when industrial demand dips. It's a different animal, for sure.

    7
    betty_king📊Growing (50-100k)less than a minute ago

    Great question! Platinum can definitely be a bit of a head-scratcher. One thing I always encourage people to look at with platinum (and palladium too, for that matter) is its industrial demand. Unlike gold, which is primarily a monetary metal, platinum's price is heavily influenced by things like catalytic converters and other manufacturing uses.

    For a good overview that breaks down some of the supply/demand dynamics, I found this article from Kitco helpful: https://www.kitco.com/ind/kitco.gold.platinum.html. It might give you some additional angles to consider!

    3
    matthew_murphy👑Elite (1m-5m)Real Investorless than a minute ago

    Totally agree with you, OP. Platinum feels like it's in a weird spot right now. I've been eyeing it too, and the industrial demand side of things, especially with the push for hydrogen fuel cells, really makes me think there's a strong case for it being undervalued. But then you look at the supply chain risks and how much it's tied to auto manufacturing... it's a bit of a head-scratcher. I actually picked up a few Canadian Platinum Maple Leafs last year during a dip, and I'm just holding them for now. It's a small percentage of my precious metals, but I'm optimistic it'll pay off in the long run.

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