Friends, physical platinum is priced at a generational, once-in-a-lifetime discount. Here’s why… Platinum has historically been worth about 15x the price of oil – so $100 oil = $1500 platinum. Today, platinum is priced at just 10x oil ($100 oil = just $1000 platinum). Simple mean reversion means this will eventually lead to a 50% gain in the platinum price. And that’s assuming oil stays at $100, when it could realistically move far higher…
But that’s just the beginning, because historically platinum has also been worth MORE than gold (makes sense, because platinum is actually 30x rarer than gold). Look at the chart below and you’ll see it’s not unheard for platinum to even trade 2x higher than gold. Why does this matter? Today platinum is priced 50% LESS than gold (gold is ~2K, platinum ~1K).
Again… platinum doesn’t have to go “to the moon” – if valuation simply returns to the multi-decade mean (being worth slightly more than gold) a 100% gain is implied. Even this is ultra-conservative, because it assumes the gold price doesn’t move any higher from here (unlikely – to say the least – when every other physical commodity is appreciating)
Lastly, the 2019 average cost curves for platinum were $875/oz. That’s BEFORE fed stimulation to prop up the March 2020 crash, BEFORE oil went to >$100+/barrel, and before Russia (the world’s 2nd largest platinum supplier) had their supply disrupted by war. Given all of the above, 2022’s average platinum cost curves must be AT LEAST $1000-1100/oz, perhaps just from higher labor and energy input costs alone… This is literally the spot price of physical platinum right now. Which means you can buy this asset for what it costs producers to dig it out of the ground (if not for LESS than the cost). If that’s not a margin of safety, I don’t know what is.
PS: This isn’t investment advice. Consider it a starting point for your own research… but I am amazed at how few people own Physical Assets at a time when bank accounts are being frozen, and the assets of private citizens are being arbitrarily seized. Consider if you really want all of your wealth stored as pixels and digits on a screen. That’s all!