The Lemon Fool

As the title says, platinum has stirred but is a long way behind anything else in the precious metals area.
Will the market ever make the intellectual leap and view it as a cheap precious metal relative to gold, or is it destined to be a slightly marginalised industrial metal.
Either way, how much 'boing' is there in the current price of platinum?

I sold my physical platinum ETF at a loss earlier this year, after it had completely failed to make the progress I had expected. It was entirely my fault, because I had simply not made the right connection.

Which is: that platinum demand is substantially related to the manufacture of catalytic converters for diesel cars. And that the latter are going out of fashion like last year's newspapers. Petrol cars use palladium or rhodium, which have soared in price as platinum has struggled to find friends.

I am no fan of Money Week, but this article sums it up succinctly. https://moneyweek.com/507382/platinum-p ... he-future/

BJ

I am not disagreeing with any of these points but my small investment in Sylvania Platinum (SLP) has done very well. Up 75% since purchase in January this year (although down a bit in the last couple of months) and throwing off a 2.5% yield. I don't intend selling anytime soon and I suspect that platinum prices probably will recover at some point. It does though also produce some palladium and rhodium, so I guess that has buffered the price too, although its a 60%+ platinum producer. Seems like a good three way hedge.

MM