Platinum's Head of Steam And Other Thoughts

Platinum is building a head of steam. Ok, while gold futures are $1552, silver futures are $18.14,  and palladium is $1477, October platinum futures are only $867.7. Yes, the platinum market is up today by $9.9, but in my book is stupidly cheap on an absolute basis and relatively. Platinum has been a lot of work; it has been a difficult and frustrating long, but in today's world, it is an enormous opportunity to be able to acquire one of the rarest of all elements on planet earth, at today's prices. As I have often noted, the world's platinum production including recycling, totals only about 8 million ounces, valued at less than 7 billion, which is a tiny amount in the context of world money flows. Platinum is building a head of steam, and at one point will explode upward.

My price objectives? Gold at $5000; silver on its way to $50 and then $100, and platinum somewhere in the multiple thousands. Does that sound like pie in the sky, dreams, and hopes? Step back and think about how so many assets over the years and decades have increased in value many times over. While not dismissing the magnitude of a move where gold triples, simply take a look at almost any stock chart going back a decade or so. The Dow bottomed at $6600 in 2009 and today is up more than 400%. Platinum's low, in 2008 was in the upper $700s, not far from where it is today, making today's price, after inflation adjustment, much below that level. Gold by contrast, in 2008 and 2009, traded as low as $684 and as high as $1021. 

I have discussed, ad nauseam, in my ebook and throughout my blog posts, my logic. Take a look and discover that my bullish point of view on all the precious metals, is not about a haven in a crisis, but rather the opportunity to have purchasing power certainty. Low interest rates of course make an investment in a non-interest bearing asset easier, but the primary argument for gold and platinum is simply the relatively tiny supplies in the context of world money, and the confidence of knowing that your money will keep pace with inflation.

1 comment

  • BB

    Thanks for sharing your thoughts and expertise, interesting info on the market size comparison of the various metals. Persuasive arguments. Do you have thoughts on the electric car market and it’s impact to the PMG as far as demand, and most importantly .. when. Thanks, and continued good fortune !

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