Gold, platinum, and silver to 1910. All trading at or near all-time highs.

click for ginormous chart

Source: Gobal Financial Data


Platinum has amazingly gained nearly a 10% over 7 trading sessions (Wednesday’s close). It is now trading at a premium to gold.

Political turmoil and a crisis in Mali saw mines shut down. Africa has has been in the midst of complex labor disputes, adding to the fear of shutdowns and supply constriants.

Add to that speculation of a rift between the FED and ECB, and Germany’s 1930s-ish repatriation of gold from New York, London, and Paris, and you have the makings of some curious trading.



Ralph M Dillon

Category: Gold & Precious Metals, Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

13 Responses to “Gold, Silver and Platinum . . . Yes, Platinum”

  1. JimRino says:

    Correlates to population explosion, and a recovering economy?

  2. hawks5999 says:

    Those foolish Germans and their 1930s-ish repatriation of gold. They would be soooo much smarter to follow a 1920s-ish hyperinflation through fiat printing.

  3. DarthBeta says:

    We are to believe the pricing currency $USD was the same in 1910 as it is in 2012?

  4. Bam_Man says:

    I should think that Platinum looks very undervalued here, considering that Trillion $ coins can be minted from small amounts of it.

  5. RW says:

    Interesting Y axis: Why would binary numeric increments make sense for a decimal-based currency like the $USD?

    In any case the decade from 2000 to 2010 was quite lucrative in the PM trade but far less so since then. Some hedges aside I am pretty much out of the PM market and plan to keep it that way for now.

    NB: Germany is repatriating a portion of its gold, mostly from French storage, ostensibly as a control and accounting measure: It is irrelevant to their currency of course since that is the Euro and the Euro is not gold-backed; it is also irrelevant to France for the same reason.

    That aside German policy remains rather contractionary and, combined with Europe’s wider economic problems, is still leading to higher unemployment as expected albeit not at quite as high a rate as predicted. European asset prices were so hammered though that I still expect an intermediate bounce and allocated some cash awhile back to that expectation.

  6. klhoughton says:

    Bam_Man has it backwards. Foolish investors ran into the platinum market thinking the Fed will soon need enough Pt to sink the Titanic to mint that $1B coin.

    Expect a correction now that John Corynn has declared there will not be a debt ceiling issue.

  7. The oddity isn’t that Platinum is (was) trading at a premium to gold….the oddity is that Platinum ever trades at a discount to gold.

  8. 4X says:

    As early as March 2013, the IMF will include the Australian Dollar in its quarterly survey of central banks’ foreign exchange reserves. Just like gold, a more popular reserve holding, the Australian dollar (AUD) has gone up substantially in value against the US Dollar (USD) in the 10 year period between 2001 and 2011.

  9. drewburn says:

    No inflation ajustment? I’m aware that, adjusted for inflation, gold remains above it’s 1980 peak, but the chart is like looking at IBM stock. Is it really that overvalued here?

  10. kobyashimaru says:

    Using but one of many inflation calculators on the web $1 in 1910 was worth $.043 in 2010 or what, about 2500% more to buy that same dollar today? The chart is like the old Henny Youngman story…when asked “How’s your wife?” he replied “Compared to what?”….

  11. 10x25mm says:

    The platinum market is very different from the gold and silver markets. Typically, there is less than six months’ platinum consumption ‘on the surface’, so it is much more sensitive to supply and demand changes than gold and silver. Platinum is truely an industrial metal, with the vast majority of its output going into new catalysts. Recycling is well established, so it takes industrial growth to drive the market upward. The platinum market finally has bought into the automobile production recovery, just in time for strikes and labor unrest at major platinum mines. The future pricing of platinum depends upon how these conflicting events play out.

  12. kobyashimaru,

    good point, though, you have this..”…$1 in 1910 was worth $.043 in 2010…” — backward..

    following..”…about 2500% more to buy that same dollar today?…”

    $0.043 in 1910 ~ $1.00 in 2010


    nice Primer~

    though, just, wait, til’ “peep” catch-on to the, True, Utility of H2O2..

    but, really, that Cheats..

    it is, rather, a Pd-Story..

    Substitution, b/c Markets Can Calculate.

    as opposed to..

    digression, enough? :)