Platinum's a puzzle – anyone else watching it closely?

Andrew Roberts

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Platinum's a puzzle – anyone else watching it closely?

andrew_roberts👑Elite (1m-5m)

about 2 months ago

Key Takeaways

•I’ve been eyeing platinum for a while now, and honestly, it feels like it’s been stuck in neutral for far too long.
•I added some in late 2020 and a bit more last year when it dipped below $900, thinking it was a steal.
•My typical investment strategy, especially in retirement here in Palm Beach, has always been about long-term value and capital preservation.

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I’ve been eyeing platinum for a while now, and honestly, it feels like it’s been stuck in neutral for far too long. With everything going on with EVs and the general push away from ICE vehicles, I get why there's been some hesitation, but looking at its historical relationship to gold, it just seems profoundly undervalued. My portfolio, in the low seven figures, has a healthy chunk in physical metals, much of it in Gold IRAs, but my platinum exposure is relatively small. I added some in late 2020 and a bit more last year when it dipped below $900, thinking it was a steal.

My typical investment strategy, especially in retirement here in Palm Beach, has always been about long-term value and capital preservation. Gold has been a rock-solid foundation, as most of you know. But platinum... it's a different beast. It's got industrial demand, yes, but also that luxury aspect for jewelry, though that's waned a bit. Are we underestimating the potential for a rebound in industrial demand, perhaps in new technologies? Or is the EV narrative just too strong to overcome?

I'm genuinely curious about what others are thinking. I'm a retired CEO, so I've seen market cycles plenty of times, but platinum's current situation has me scratching my head a bit. For those of you with significant metals allocations, how are you viewing platinum right now? Are you adding, holding, or are you just sticking with gold and silver? What price point, if any, would make you aggressively jump in or consider selling some of your existing holdings?

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6 comments

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Best Answer▲ 15 upvotes

william_davis💎Premium (500k-1m)

Man, platinum. I actually dipped my toes in briefly back in late 2010, early 2011, riding that commodities wave. Bought about 20 oz hoping for similar gains to gold, especially with the auto industry starting to pick up again post-recession. Ended up selling most of it off by 2014, breaking even at best after fees. Just never saw that sustained momentum, unlike my gold holdings. It’s certainly a puzzle, as the thread title says.

Comments (6)

margaret_chen🏆Advanced (250-500k)Real Investor•about 2 months ago

Totally feel this! I bought some platinum a few years back, thinking it was a steal compared to gold. It's been... interesting. Definitely not the quick mover I thought it might be. Still holding, though, because like you said, that historical relationship is hard to ignore in the long run. Just need some patience, I guess!

joshua_phillips🏆Advanced (250-500k)Real Investor✓ Verified•about 2 months ago

Totally get what you mean. Platinum's been a head-scratcher. Have you looked into the industrial demand side beyond just auto catalysts? Curious if there's any other big sector that could pick up the slack or if that's still the primary driver people are *hoping* for.

ronald_morris👑Elite (1m-5m)Real Investor•about 2 months ago

Totally get the sentiment, but "stuck in neutral" might be a bit harsh. While it hasn't seen gold's meteoric rise, platinum's actually had some decent pops this year, especially compared to some other industrial metals. The EV narrative is big, but don't forget the *other* industrial uses, and rhodium's insane price might just push more manufacturers back to platinum catalysts. Just something to chew on!

steven_mitchell🏆Advanced (250-500k)Real Investor✓ Verified•about 2 months ago

Yeah, Platinum's definitely one to watch, especially for diversification beyond just gold and silver. I've got a small allocation in my Gold IRA (around 8% of my precious metals stack, roughly $25k worth) and it's been interesting to see how it moves differently. The industrial demand for platinum, particularly in catalytic converters, gives it a unique angle compared to purely monetary metals, but that's also its Achilles' heel if the auto industry hiccups.

william_davis💎Premium (500k-1m)Real Investor•about 1 month ago

donna_rogers🏆Advanced (250-500k)Real Investor•about 1 month ago

Honestly, after seeing platinum bounce around like a rubber ball the last few years, I'm starting to think focusing on its *industrial* demand is a bit of a red herring. Maybe it's just me, but I'm getting the vibe that its investment appeal is far more about what the global auto industry *might* do in 5-10 years than any current supply/demand fundamentals. Feels less like investing, more like reading tea leaves.

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