Post: #1

Gold is currently selling for about $1,225. Platinum is selling for about $848. Throughout much of my life, platinum has been more expensive than gold. In 2008, platinum was about $2,000; while gold was around $800.

So, why is platinum so cheap?

Post: #2

Its industrial uses are in decline.

Post: #3

gold is money, platinum is an industrial metal used in the auto industry for catalytic converters.

10 years ago the industry switched over to palladium, which is a cheaper alternative to platinum.

Just because two things have a long term correlation does not mean that correlation has to be permanent. But you are not alone in making that mistake; some nobel prize winners almost blew up the world in 1998 with their hedge fund Long Term Capital Management.

Roger Lowenstein wrote a good book abou it, When Genius Failed: The Rise and Fall of Long-Term Capital Management. Random House. ISBN 0-375-50317-X.

Post: #4

Because the market can remain irrational longer than you can remain solvent.

Post: #5

Good time to pick up a platinum Rolex for cheap

Post: #6

Hypno nailed it, if you check the price of Palladium then you have your answer, Platinum got too expensive for it's principal purpose of use in catalytic converters and thus the majority of manufacturers shifted to palladium as it was significantly cheaper. Palladium has actually flipped the script now but it will need to go higher before the cost to change back to using platinum would be worthwhile as they have to change all the plants and infrastructure for it.

Palladium also riding the Chinese focus to reduce the pollution levels that are suffocating their cities and the shift away from diesel.

Post: #7

With the rise of electric cars, neither may be that useful if you are looking at a 10+ year investment.

Quote:The rise of the electric vehicle will have a negative long-term impact on demand for platinum and palladium, due to use in conventional gasoline and diesel vehicles.Despite this, the low penetration of the electric vehicle in the broader autos market forecast over the next 10 years and continued growth in platinum /palladium-containing hybrid vehicle sales will sustain demand for both metals in the shorter term, delaying any serious effect in this regard over 2017-2026.

Post: #8

One of the big uses is in the catelactic converter in cars. Auto sales have been off a little lately, so that may be having an effect on the price.