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Gold/Silver vs. Platinum/Palladium

Bruno

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Joined
Feb 3, 2008
Messages
19,518
Anyone know much about platinum/palladium? I was considering them recently, but their drop does not seem to reflect a hedge against inflation. Perhaps that is a perfect reason to buy while they are low, as they will be a hedge against the hedge of all hedges. :)

*GOLD 893.8 894.8 30.9 3.58% 857.8 918.1
*SILVER 12.61 12.65 0.55 4.56% 12.07 12.98

*PLATINUM 1094 1101 -23 -2.06% 1081 1159
*PALLADIUM 233 241 -11 -4.51% 228 248
 
Anyone know much about platinum/palladium? I was considering them recently, but their drop does not seem to reflect a hedge against inflation. Perhaps that is a perfect reason to buy while they are low, as they will be a hedge against the hedge of all hedges. :)

*GOLD 893.8 894.8 30.9 3.58% 857.8 918.1
*SILVER 12.61 12.65 0.55 4.56% 12.07 12.98

*PLATINUM 1094 1101 -23 -2.06% 1081 1159
*PALLADIUM 233 241 -11 -4.51% 228 248

It appears that platinum and palladium are much more volatile than gold and silver, mainly because they have a lot more supply scares. The reason why platinum and palladium are down, from what little I have just researched, is because they hit peaks (a record one for platinum, at 2,300 per ounce) on supply scares.
 
It appears that platinum and palladium are much more volatile than gold and silver, mainly because they have a lot more supply scares. The reason why platinum and palladium are down, from what little I have just researched, is because they hit peaks (a record one for platinum, at 2,300 per ounce) on supply scares.


Thanks for the input. The high of 2300 is quite off its current marks.
 
Anyone know much about platinum/palladium? I was considering them recently, but their drop does not seem to reflect a hedge against inflation. Perhaps that is a perfect reason to buy while they are low, as they will be a hedge against the hedge of all hedges. :)

*GOLD 893.8 894.8 30.9 3.58% 857.8 918.1
*SILVER 12.61 12.65 0.55 4.56% 12.07 12.98

*PLATINUM 1094 1101 -23 -2.06% 1081 1159
*PALLADIUM 233 241 -11 -4.51% 228 248

Pt and Pd are more industrial metals than precious. Same goes for Rhodium. Pt is more rare than gold so you'll probably not see it below gold. It was above 2k based on huge auto demand for Pt and supply shortages because of South Africa's power issues. Now that we appear to be in a global pullback, that demand has decreased. If you believe that the world will be building more cars in the future, they are good investments right now. I have no clue where the bottom is on the two metals but I do believe that if you buy Pt or Pd right now, you are buying low. Pt is probably better than Pd. But again, these are more industrial plays rather than inflation plays. You can make a lot more money than you would in gold if it works out. It's a little more speculative though.

I'm a chemist and can tell you, we haven't really been able to replace Pt, Pd, and Rh as catalysts and we won't be doing so any time soon. The problems is South Africa won't last forever. So, where they go from here is anyone's guess.
 
Pt and Pd are more industrial metals than precious. Same goes for Rhodium. Pt is more rare than gold so you'll probably not see it below gold. It was above 2k based on huge auto demand for Pt and supply shortages because of South Africa's power issues. Now that we appear to be in a global pullback, that demand has decreased. If you believe that the world will be building more cars in the future, they are good investments right now. I have no clue where the bottom is on the two metals but I do believe that if you buy Pt or Pd right now, you are buying low. Pt is probably better than Pd. But again, these are more industrial plays rather than inflation plays. You can make a lot more money than you would in gold if it works out. It's a little more speculative though.

I'm a chemist and can tell you, we haven't really been able to replace Pt, Pd, and Rh as catalysts and we won't be doing so any time soon. The problems is South Africa won't last forever. So, where they go from here is anyone's guess.

Thanks for the knowledgeable analysis.
 
Pt and Pd are more industrial metals than precious. Same goes for Rhodium. Pt is more rare than gold so you'll probably not see it below gold. It was above 2k based on huge auto demand for Pt and supply shortages because of South Africa's power issues. Now that we appear to be in a global pullback, that demand has decreased. If you believe that the world will be building more cars in the future, they are good investments right now. I have no clue where the bottom is on the two metals but I do believe that if you buy Pt or Pd right now, you are buying low. Pt is probably better than Pd. But again, these are more industrial plays rather than inflation plays. You can make a lot more money than you would in gold if it works out. It's a little more speculative though.

I'm a chemist and can tell you, we haven't really been able to replace Pt, Pd, and Rh as catalysts and we won't be doing so any time soon. The problems is South Africa won't last forever. So, where they go from here is anyone's guess.

well said. the thing with gold and silver, is that they are money. these other precious metals have not historically been used as money, so we only desire them for their industrial purposes. Buying platinum and palladium are more like buying nickle, zinc, copper, aluminum, etc. whereas gold and silver stand alone as money.

so if inflation gets really out of control, they should go up anyways, even if the demand for their use is falling. but if we get inflation and growth, then they should be a good buy. But if you think we'll get inflation with lower growth, gold and silver is where you want to be.

but i think when the dust settles, the other economies around the world will one day realize that they don't need the US... and then you'll see massive growth coming out of China, Brazil, India, Russia, etc and most of Asia... so when these economies cut the US off and let America collapse, you should see tremndous economic growth coming out of these areas, and inflation will probably still be a problem, so they should do well. however, right now, it looks like America is taking the rest of the world down with the ship, in which case, stick mainly with the precious metals... then when the rest of the world starts to recover from the shock of the crash, then platinum and palladium might be good options.
 
I wish I had bought rhodium in 2003 and sold in 2008.
That was an increase of 21x.
rh1825lnb.gif
 
Who cares about palladium and rhodium?

(No I'm not being an a-hole, I seriously don't know)
 
Who cares about palladium and rhodium?

(No I'm not being an a-hole, I seriously don't know)

No worries, I don't know much about it either. Just thought it was worth looking into.

Rhodum
Applications
The primary use of this element is as an alloying agent for hardening and improving the corrosion resistance[4] of platinum and palladium. These alloys are used in furnace windings, bushings for glass fiber production, thermocouple elements, electrodes for aircraft spark plugs, and laboratory crucibles.[5] Other uses include:

It is used as an electrical contact material due to its low electrical resistance, low and stable contact resistance, and its high corrosion resistance.
Plated rhodium, made by electroplating or evaporation, is extremely hard and is used for optical instruments.
This metal finds use in jewelry and for decorations. It is electroplated on white gold and platinum to give it a reflective white surface. This is known as rhodium flashing in the jewelry business. It also may be used in coating sterling silver in order to strengthen the metal from tarnish, as a result from the copper compound found in sterling silver.
It is also a highly useful catalyst in a number of industrial processes (notably it is used in the catalytic system of automobile catalytic converters and for catalytic carbonylation of methanol to produce acetic acid by the Monsanto process). It is used to catalyse addition of hydrosilanes to a double bond, a process important in manufacture of certain silicone rubbers.
The complex of a rhodium ion with BINAP gives a widely used chiral catalyst for chiral synthesis, as in the synthesis of menthol.
It is also used as a filter in mammography systems because of the characteristic x-rays it produces.
It is also used in high quality pen surfaces due to its high-resistance characteristics. These pens include Graf von Faber-Castell, Caran D'ache which are rather less famous than Montblanc, but produces very limited pens.
 
Platinum is a catalyst as well. If Obama is prez (:mad:) and starts subsidizing hydrogen fuel cells (:mad:) they may be some very good PM's to invest in. For the short term, I'd stick with silver and gold, because they're good for trading if SHTF (who the hell knows how many cans of food an oz of platinum or palladium would be worth?).

If you're stocked up on silver and gold, the others (platinum, palladium, rhodium) may be a good investment... Now I KNOW somebody's going to correct me and say that PM's aren't an investment, but if a PM is rare, is used in industry, and then that industry gets subsidized, you'll make money on it, making it an investment (or a gamble, whichever term you prefer these days... sure things are gone).
 
well said. the thing with gold and silver, is that they are money. these other precious metals have not historically been used as money, so we only desire them for their industrial purposes. Buying platinum and palladium are more like buying nickle, zinc, copper, aluminum, etc. whereas gold and silver stand alone as money.

Excellent point. The problem is their liquidity. You would need to know how and to whom you can sell it. And while doing so, you better have a very safe place to store it.
 
I have 200 canadian silver maple leafs... is that good supply for SHTF?

any amount you have is better than zero.

platinum up $98 today, for 8.6% increase
palladium up $23 today, for a 9.9% increase

they were the bigger movers than gold and silver today, surprising, after the highest oil spike in history.
 
Only buy these metals if you plan on just adding variety to your current stash. I don't think these metals are easily recognized or popular.
 
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