Investing in Platinum

[platorepublic]

Does anybody invest in platinum?

I don't own any except a ring, but in my opinion (as a chemist), it seems like a good investment.

At the end of the day, it is in demand by the chemical industry as a catalyst in many industrial processes (until an alternative can be used). The same can not be said for gold.

[bjl584]

It's like any other precious metal. It's probably not a good investment. Look what just happened to gold and silver. The prices collapsed because people had no real idea what they were worth or how to assign value to them.

[platorepublic]

It's like any other precious metal. It's probably not a good investment. Look what just happened to gold and silver. The prices collapsed because people had no real idea what they were worth or how to assign value to them.

The thing is platinum has inherent value. Who cares what other people think?

[bjl584]

The thing is platinum has inherent value. Who cares what other people think?

So does gold and silver. Both are used in industry as well.

And it absolutely does matter what other people think. The entire collective consciousness of the markets are what other people think. If they all deem your platinum, or your stocks, or your mutual funds to be worthless, then that isn't a good investment.

If you are suggesting that platinum has intrinsic value in the form of taking a physical bar of platinum and trying to trade it for goods and services like you would money, then good luck with that.

[platorepublic]

So does gold and silver. Both are used in industry as well.

And it absolutely does matter what other people think. The entire collective consciousness of the markets are what other people think. If they all deem your platinum, or your stocks, or your mutual funds to be worthless, then that isn't a good investment.

If you are suggesting that platinum has intrinsic value in the form of taking a physical bar of platinum and trying to trade it for goods and services like you would money, then good luck with that.

It matters what other people think to an extent. But that is for everything.

You want to invest in something that has real value. And I believe a chemical element like Platinum is the way to go.

[bjl584]

It matters what other people think to an extent. But that is for everything.

You want to invest in something that has real value. And I believe a chemical element like Platinum is the way to go.

Well, if that's what you want to do good luck.

But, your platinum would just sit there in a vault. You won't even collect a dividend. The price of platinum is about the same as it was in 2007. I don't see that as a good investment or a good strategy for retirement.

If you are talking about having a small portion of your portfolio in metals, then I can support that. But, I wouldn't have the majority of my investments tied up in it.

[platorepublic]

Well, if that's what you want to do good luck.

But, your platinum would just sit there in a vault. You won't even collect a dividend. The price of platinum is about the same as it was in 2007. I don't see that as a good investment or a good strategy for retirement.

If you are talking about having a small portion of your portfolio in metals, then I can support that. But, I wouldn't have the majority of my investments tied up in it.

Oh I am not really considering it. I would only do it if I had excess money. Like a lot of excess money.

[coffee]

Does anybody invest in platinum?

I don't own any except a ring, but in my opinion (as a chemist), it seems like a good investment.

At the end of the day, it is in demand by the chemical industry as a catalyst in many industrial processes (until an alternative can be used). The same can not be said for gold.

Chemist here also. Pt and Pd have industrial uses and Ag does also. Au is actually used as a coating for high end connectors. Pt is pretty pricey, but it might be a good idea to buy some as a hard asset. I have a very small amount of gold and 220 oz of silver.

[feh]

The thing is platinum has inherent value. Who cares what other people think?

Nothing has inherent value. Something is only worth what somebody else is willing to pay for it.

[disneysteve]

Nothing has inherent value.

That's not true. Something can have inherent or intrinsic value. That is different than putting a price on that value.

Something has intrinsic value when it serves some purpose or can be used to achieve something else. For example, an apple has intrinsic value as a food source. Now I might be willing to pay $1 for that apple or if I'm really hungry, maybe $5, or if I just finished Thanksgiving dinner, I might not want to pay anything for it, but that doesn't change the intrinsic value.

OP's point, I believe, is that platinum has various industrial uses. That gives it intrinsic value. How much monetary value it commands is what will vary over time.

[feh]

OP's point, I believe, is that platinum has various industrial uses. That gives it intrinsic value. How much monetary value it commands is what will vary over time.

Fair enough. However, the context is investing. In that context, something is only worth what another is willing to pay for it.

[platorepublic]

Fair enough. However, the context is investing. In that context, something is only worth what another is willing to pay for it.

Yes I understand this.

But if something has intrinsic value rather than not (or less), it is more likely that someone will be willing to pay for it in the long term or if you calculate averages.

[disneysteve]

Yes I understand this.

But if something has intrinsic value rather than not (or less), it is more likely that someone will be willing to pay for it in the long term or if you calculate averages.

Correct. I'd much rather invest in platinum than in some internet startup that produces no product and has an unproven business model. That's not to say that I would necessarily invest in platinum, but between something with intrinsic value and something without it, I'll pick the one with value for sure.

[bjl584]

Yes I understand this.

But if something has intrinsic value rather than not (or less), it is more likely that someone will be willing to pay for it in the long term or if you calculate averages.

True. But, in your assumption, there would have to be only two things in the entire world to invest in. Platinum or some other thing that has less intrinsic value. If that were the case, then people would gravitate toward platinum. But, in the real world there are countless things to invest in. There is no guarantee that people will gravitate toward precious metals.

[platorepublic]

True. But, in your assumption, there would have to be only two things in the entire world to invest in. Platinum or some other thing that has less intrinsic value. If that were the case, then people would gravitate toward platinum. But, in the real world there are countless things to invest in. There is no guarantee that people will gravitate toward precious metals.

Sorry, but I don't remember saying or implying there are only two things in the entire world to invest in.