Mar 21 2009
Platinum Still Cheap
This blog has been encouraging you to invest in Platinum if you have the spare change. At the time, it was on sale for around $900. Now it’s up over $1100. Time to buy?
Yes, but expect it to pull back just a little bit. That’s not to say it will for sure, but it might. However, the price of platinum is still good enough that you can ride out a little temporary downside. This metal is truly on sale: the recent correction was due to the drop in demand of platinum for the car making industry. Car production is temporarily down, and platinum is used in the making certain car parts. You can bet that when car production turns around, as it will, the price of platinum will go zooming upward again.
Only palladium will serve as an alternate to the platinum in the industrial world, so if you want to stock up on a cheaper metal, palladium is also a possibility. From a historical perspective, palladium flew to a high in early 2000 of over $800. This is not a usual run up, not terribly predictable. Buying palladium is somewhat purely speculative. Keep in mind, however, that it does generally make it up to well over $400, so with it currently selling at $200, it sincerely is in Bargainland right now.
If you buy these metals, consider purchasing beautiful coins, and always buy from a reputable storefront dealer. On the day Paul Harvey died, his fill in announcer told of a woman who was approached in a parking lot, and offered to sell her a bar of gold for $5000. She did it, the strangers left, and she noticed later that the flakes covering the bar started to peel off. Moral of the story: buy from a reputable dealer.
As for other metals, gold and silver are still in hot demand. Dealers are reporting both selling and buying. Seems that the sellers are taking advantage of why you buy gold in the first place: to protect you against inflation and to help out during difficult times. Most financial gurus believe that gold will still go up in price and if you can get your hands on some, have money to burn, you should buy.
In the meantime, for the run up that will go the fastest, remember platinum. It has been shiny all this last month, a trend that will likely continue.
