Gold, double your money in 4 years? Almost.

By | January 1, 2009

On 12-24-04, I purchased 2.5 ounces of gold coins for $1,170. ($468 per oz). Today, 12-31-08,  gold is $880.00 per oz, so my gold is now worth $2,200. Not bad. I think I’ll sell the gold and buy platinum. Platinum is currently low.  Buy low, sell high.

… platinum is a widely-used although extremely rare metal, critically important to the auto industry, the jewelry trade, and the chemical, electrical and glass manufacturing industries. Far rarer than gold, it is estimated that all of the platinum ever mined throughout history would fit into a cube less than 25 feet on each side. The vast majority of platinum mined today comes from just two parts of the world: The Bushveld Complex north of Pretoria, South Africa and the Noril’sk-Talnakh region of Siberia in Russia, which produce, respectively, about two-thirds and one-quarter of the world’s platinum supply each year.

Platinum’s supply/demand fundamentals are tight. In fact, according to some estimates, if platinum mining were to cease today, there would be only about a year’s supply available to industry. In contrast, above-ground supplies of gold would last nearly a quarter of a century. – monex

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