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Gold and platinum prices


#1

Gold prices have now exceeded platinum prices for several months. I’m
interested to know if this is most likely related to continued
investor demand for gold bullion, industrial demand, or some other
reason. Is platinum likely to return to the top spot soon? If so,
will platinum increase in price or will gold decrease in price?

Jamie


#2

if I could answer your question, i wouldn’t, i would use that
knowledge to make my own pile without competition. the oracle of
delphi may be able to do better than humans.

john


#3
Gold prices have now exceeded platinum prices for several months.
I'm interested to know if this is most likely related to continued
investor demand for gold bullion, industrial demand, or some other
reason. Is platinum likely to return to the top spot soon? If so,
will platinum increase in price or will gold decrease in price? 

Until recently there was very little speculative market in platinum
so its price was much closer to the actual cost to deliver it to
market. Gold on the other hand has a fairly significant amount of
speculative burden on it. It is likely something close to half the
current price of gold is due to speculation.

Jim

James Binnion
James Binnion Metal Arts


#4

Jamie,

From what I understand, when faith in the dollar is shaken, gold
prices go us as people invest in gold, instead of currency.

Platinum is pretty stable at the moment, gold has sky-rocketed due
to demand.

If gold does drop, platinum will probably remain stable.

If gold continues to rise, possibly we’ll see a lot more platinum
jewellery on the market.

It’s not a good time to buy gold for investment reasons. Due to the
stability of platinum it’s probably not a good time to buy that for
investment reasons either.

Regards Charles A.


#5
Gold prices have now exceeded platinum prices for several months.
I'm interested to know if this is most likely related to continued
investor demand for gold bullion, industrial demand, or some other
reason. Is platinum likely to return to the top spot soon? If so,
will platinum increase in price or will gold decrease in price? 

I’m gonna guess on this one. Gold prices mostly respond to currency
values, the price of oil and similar indicators of economic health or
ills. Influences on current gold market will be investor worries,
driving some to “safe” commodities like gold, as well as the value of
the dollar versus the Euro and other world currencies. I’d guess the
current drop in gold from it’s highs a couple months ago is mostly
reflective of the relative changes in value of the dollar versus the
Euro, and European worries have raised the value of the dollar, so
it takes fewer of them to buy the same ounce of gold. The gold price
hasn’t change, rather the value of the money buying it has increased.

Platinum, on the other hand, is less of a financial instrument.
Sure, it’s a precious metal and commodity, but to much less a degree.
Much more of it’s price is dictated by actual industrial demand, and
in a world wide recession, there’s less of that demand, or at least,
less certainty of future demand, so prices aren’t driven up, but
instead, down on fears there will be less demand for the stuff.

That’s my guess.

Peter


#6

While the market price of platinum is as much as $200 lower than
gold (and as of right now, bigger difference than that; 14% higher of
gold over plat), I notice the price of finished goods is not. My
(unscientific) research on the cost of rings at a major seller to
the trade shows a 20-30% cost of platinum over gold.

Wait, wait, I caught my mistake…the volume of metal to make a
given ring equates to much more platinum mass than gold mass. Ergo,
higher price due to mass, that disguises market price.

To me, the real metal price of interest is palladium. When I bought
back in late 2008, I paid an average of 180/ozt. It’s now up to
$612/ozt…and that’s down from a high of near $700! Even silver
hasn’t had that much change. What’s going on there? Why palladium
and not platinum?

best regards,
Kelley Dragon


#7

Only the people that owns the monetary word knows that.


#8
To me, the real metal price of interest is palladium. When I
bought back in late 2008, I paid an average of 180/ozt. It's now up
to $612/ozt...and that's down from a high of near $700! Even silver
hasn't had that much change. What's going on there? Why palladium 

Palladium actually hit over $1000 an ounce 10 years back in Jan
2001. 2008 was a low point in palladiums price in the past 10 years
because the demand for automobiles tanked in 2008 due to the
beginning of the great recession. Palladium like platinum is mostly
used in the industrial sector. It has mostly replaced platinum in
automobile catalytic converters which is probably its largest use. So
it responds to the demand for automobiles that have catalytic
converters and supply issues more than the financial markets.

James Binnion
James Binnion Metal Arts


#9

I personally see the inversion of platinum and gold to be an
indicator that gold is artificially over-priced right now (read that
"bubble", just like tech stocks in the late nineties and real estate
just a couple of years ago). As others have said, gold is (at least
in part) what most monetary systems are based on. Governments have
tremendous control through their buying power and lots of governments
have been buying gold. Platinum and to a greater extent silver are
based on less fickle market variables, such as plain old supply and
demand.

Truth is though, if I knew what was happening and what was going to
happen in the metals markets, I sure wouldn’t be wearing my hands out
making jewelry and wearing my calculator out trying to sell it.

Dave Phelps


#10
Why palladium and not platinum? 

Remember that by far, the largest use for palladium is not jewelry,
but rather, industrial, especially automotive catalytic converters.
Any upswing in worldwide automobile manufacturing and buying means an
increased demand for catalytic converters and thus, palladium.

Peter


#11
I'd guess the current drop in gold from it's highs a couple months
ago is mostly >reflective of the relative changes in value of the
dollar versus the Euro, and European worries have raised the value
of the dollar, so it takes fewer of them to buy the same ounce of
gold. The gold price >hasn't change, rather the value of the money
buying it has increased. 

This is exactly the main driving force of the gold market right now.
Investors are taking money out of Euro(growing riskier by the day),
and putting their funds in US dollars(stronger). This makes gold
less expensive in US dollars and more expensive in Euro dollars. In
addition, strong investor demand has kept gold price from going even
lower. Look at Kitco, near top of page, click button in window that
says “Did gold Really go up?”. This is updated aprox every minute.
As I type this, it states that weakening of US dollar has made the
cost to USA increase by $2+, as well as increased demand raised the
cost another $2+. Hence a total increase of $4 and change. Sometimes
demand lessens/increases, and strengthening/weakening of dollar
occur together and end in a wash, or near wash on the price.


#12

Sounds like a pretty good guess to me.

Best in the new year,
Jack


#13

And most of it is produced in Russia. The market was nervous about a
consistent supply from Russia as the former USSR disintegrated but
it seems to have relaxed more now. If I remember correctly, Ford lost
a bundle after they stockpiled it, fearing a shortage; then the
market cut the price roughly in half, resulting is a huge loss for
them.

So goes any market - what will happen to prices? They will
fluctuate.

Barbara on an island which is the littlest province in Canada - we
keep under the radar.