platinumWhile we remain more bullish on both silver and gold at SD as we believe the economic downturn will intensify as 2013 progresses, we do hold a minor portion of our assets in physical platinum and palladium as a way of having some diversification of physical assets.  Sprott’s Rick Rule makes the case for platinum and palladium amidst S. Africa’s mining crisis:

Sprott’s Rick Rule talks about a few 100 baggers of his own and whether he achieved such returns through his own skills or just dumb luck. We also discuss dealing with the tough times, the coming water crisis, and whether it’s time to sell gold & silver and start buying platinum and palladium.

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  1. Sell ​​silver and to buy platinum? This is ravings. As well you can sell silver and  to buy aluminum or cast iron. Or wood, cardboard, sugar, coffee, and so on.
    They just try to cram into our heads different bullshit and ravings to somehow make us sell our silver!

  2. Paladium and Platinum have no true monetary value, Has Sprott and Rule gone Nuts? Platinum and Gold are neck in neck right now in the futures live market. Hang on to Silver and Gold period! I know Eric has his new Platinum ETF, but I wouldn’t touch it with anyone’s 10 foot pole. To Heck with the Russian and Africans Platinum mines. The auto industry ain’t gonna put a lot of demand for use in catalytic converters with the entire world economy going to Hell in a handbasket.
    Someone enlighten me.
    Ranger

    • Plus, silver is cheaper right now compare to its historical prices. I believe silver’s purchasing power will rise again once all fiat currencies collapse and then people start using silver as money. It’s the same thing with gold.

    • Actually, if you guys have been following the news you would know that auto sales have boomed in Jan-Feb and are up significantly compared to this same period in 2012.  Additionally, industry buys quite a bit of both platinum and palladium to be used as catalysts for pollution control, chemical syntheses, and for petroleum cracking / refining / reformulation.  No, industry is not doing terrific but they are doing better than they have been and just at a time when Pt/Pd material availability is suffering significant production cuts.
       
      The real time to buy platinum was when it dropped below $1400 an oz. in August of 2012.  While I did not buy any metal at that time, I did buy 400 shares of the PPLT platinum ETF.  That was recently stopped out as Pt fell back from around 1730 to 1718.  The net after taxes from this was a bit over $10k, $8k of which was just converted into 5 Canadian gold 1-oz. Maple leaf coins… a VERY nice addition to the stack, if I do say so myself.  So, it IS possible to invest in paper and reap the rewards in metal.  I am sure that those who poo-poo all paper investments will tell me to return that evil ill-gotten gain.  LOL!  That, however, will not be happening.  I do not follow the palladium market but the time for getting into that was likely last summer as well.

  3. He actually brought up some good points but why would I buy Platinum and Palladium at the top of their market right now. As for holding cash, great point and I need to think that one over.
    But there is no way I’ll sell my Silver to buy them, maybe with some of my Fiat. We shall see. In the meantime I’ll keep stacking.
    By the way what the hell is a 100 Bagger?

    • Good thinking, Charlie.  My thought is that as high in price as both Pt and Pd have become, now is probably not a great time to be jumping into them.
       
      As to silver, it is a GREAT long-term hold and likely to do better by percentage than any of the other metals.  Gold is good too and has a significant advantage in that it much lower in volume for an equal amount of money converted to it.  A lb. of gold fits easily in one’s hand while an equal value in silver (about 52 lbs) does not.  Actually, I have given up trying to figure which of these is better and have decided to just get some of each.  Somehow, I think that it’ll work out just fine, even though it may not be optimal.

  4. If there is any increased demand for platinum, its the car building overseas  China and India are producing more cars than us and their pollution is orders of magnitude worse than ours.  Green tech seems to have a large appetite for these metals.  I dont have stats but aside from a global melt down for any consumer products, there should be an increasing demand for these metals in other countries

  5. Platinum is overrated and is being priced by the market. Palladium on the other hand, its rare. Very rare. Might make a £1000 punt on a bar. Not going to loose anything, once it rises will exchange for gold. Gold is the only metal to hold for longer than 10 years. Still waiting for silver to break the 50:1 ratio.

  6. For about a year now, I’ve been saying to myself and other that I’d buy platinum before I would gold. Especially when Platinum is priced lower. 
    Two things have held me back
    - I am all-in on silver, and can’t yet justify otherwise
    - VAT on Platinum (and Palladium). Just makes it less attractive. 
    Rick’s explanation was a bit short but compelling. Yes, I’d life to diversify a bit, but somehow it seems expensive to pay such amount for either Platinum or Palladium. Tiny little coins would take huge bites out of my silver stack, it just feels wrong. Even though I can believe their suppply is getting tight, and reserves have run dry. 
    @WaitingForSilver
    GSR hit 32 just recently, in 2011. It was short but sweet, and I missed the opportunity. Would have been sooo awesome to have swapped even 1/2 of my stack then to gold and back at 57.
    Silver supply may be doing better than Platinum and Palladium, and certainly above ground reserves are, but could the latter two really see increast Px/Ag ratios? He said over the next 2 years, that’s a short term bet in my book for metals. 
    Anyone travelling from outside the EU soon? Bring me a couple Platinum coins in your wallet, will ya? I pay in silver.

    • 2011 I was all in on gold. I made some money on the climb from £879 to £1150, then converted the money over to silver, thinking it be a great time to convert as I saw gold in decline and more potential in silver, might switch to palladium soon. Like any new investment product, think you got to be there at the start. See a massive market for it in jewellery, especially with the new hallmarks. Won’t convert my whole cache silver as said might just experiment with a small amount first. 20% tax is a killer though.

  7. Platinum and paladium is probably a good play.  Most of us can’t sell our silver now as we are underwater.  Stupid idea.  If you got fresh cash to invest for 3 to 5 years and you want to buy some platinum than knock yourself out.  Its probably a great idea.  I dearly would love to just break even on my silver.  Will this ever happen?  When I first started in this adventure I was looking for profits.  Now, after about 22 months I dream of breaking even.  Is this too much to ask Mr Silver?

  8. I always wanted to buy some platinum and palladium pieces but my local coin shops don’t sell them. I remember once when a 1/4 pure platinum coin was for sale but it was too expensive for me. So, platinum and palladium are hard to find.

  9. Rick Rule has made millions in the PM arena.  Jim Sinclair has made tens of millions.  Eric Sprott has made a billion dollars.  You might want to listen and study up on what these very accomplished men are sharing.  Read books.  Expand your knowledge beyond internet articles.  Look at a 10yr chart.  What is everyone fretting about?

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