Thinking about platinum - undervalued, or tempting trap?

Donald Nelson

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Thinking about platinum - undervalued, or tempting trap?

donald_nelson💎Premium (500k-1m)

about 2 hours ago

Key Takeaways

•Been seeing a lot of chatter lately about platinum as a potential buy, especially compared to gold.
•My typical thought process has always been that platinum is more industrial, less of a pure safe haven.
•It's tied to auto manufacturing, which obviously resonates with me here in Detroit.

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Been seeing a lot of chatter lately about platinum as a potential buy, especially compared to gold. As someone who's had a decent chunk of their portfolio (let's say over half a mil, if we're being honest) in precious metals for the last 20+ years, mostly gold, I'm finding myself wondering if this is a genuine opportunity or just a bit of a siren song. I started building hard assets when I was still on the line at Ford, saw a few downturns even before I retired, and always appreciated the stability gold offered.

My typical thought process has always been that platinum is more industrial, less of a pure safe haven. It's tied to auto manufacturing, which obviously resonates with me here in Detroit. When the industry is booming, platinum usually does well. When there's a wobble, it can get shaky fast. Given the EV transition and all the noise around catalytic converters, I'm trying to figure out if that particular demand driver is going to crater or if new applications will pick up the slack. I've been eyeing the relatively low platinum-to-gold ratio and it does look historically cheap.

I'm primarily in a Gold IRA right now, diversified across a few different allocations, and I've considered adding silver when the ratios made sense. But platinum feels like a different beast. Has anyone here actually moved some of their gold allocation into platinum recently? Or are you holding back, thinking it's still too risky given market uncertainties and industrial demand shifts? I'm curious about others' perspectives, especially those with similar long-term holdings. Is it a gift, or a goose that might lay a lead egg?

5 comments

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Best Answer▲ 9 upvotes

michelle_collins🏆Advanced (250-500k)

Dude, I've been wrestling with this exact question! For years, gold was my go-to, felt safe, reliable. But the platinum buzz has been getting louder. I actually bought a small amount a few months back, mostly out of curiosity and a 'what if' feeling. So far, it's been... interesting. Nothing crazy, but it hasn't tanked either. Definitely not putting a huge chunk in yet, but I'm watching it closely.

Comments (5)

michelle_collins🏆Advanced (250-500k)Real Investor•less than a minute ago

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

Interesting thought process, OP. With over half a mil in precious metals, you've clearly got some serious skin in the game and experience to back it up. When you say "chatter," are we talking about specific analysts you follow, or more general online sentiment you're picking up on?

frank_rivera💎Premium (500k-1m)Real Investor•less than a minute ago

Interesting thought, OP. While platinum definitely has its industrial uses, and the price *could* climb, I'm just not seeing it as a long-term safe haven like gold. Gold has that thousands-of-years history as a store of value that platinum just doesn't. Industrial demand can fluctuate wildly with the economy, making it a bit more volatile, wouldn't you say? For a significant chunk of a portfolio, I'd still lean towards the tried-and-true.

christopher_young🌟Ultra (5m+)Real Investor✓ Verified•less than a minute ago

Hey, interesting question! On the platinum front, have you checked out the historical platinum-to-gold ratio? It's a pretty good indicator of its relative value. Right now, it's near historical lows, which some see as a strong buy signal.

Here's a decent article that breaks down the ratio and some of the factors influencing platinum: Goldbroker - Platinum-to-Gold Ratio Might give you some more food for thought!

frank_rivera💎Premium (500k-1m)Real Investor•less than a minute ago

Totally agree with your sentiment here. Platinum is definitely looking interesting right now. I've had a similar portfolio size, maybe a bit less (high 6-figs), and I've been eyeing platinum for a while too. Recently took the plunge and added a decent chunk, about 10% of my precious metals holdings, to platinum. Time will tell, but it feels like a smart move given the current gold-platinum ratio.

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