OJO Zafado

Investor Interest Fuels Platinum Group Metals Higher

I must be uninformed. The symbol prompt that brought me to this blog was DBP. DBP as I understood it was a mix of Gold and Silver futures investments. It does not directly own bullion? To my knowledge the only WIDELY traded US investments in Platinum are the ETNs PTM and PTY. The PTM being a nearly pure platinum participation ETN, while the PTY emulates the DBP while also carrying positions in other precious metals such as the platinum group. Widely traded may be an exaggeration but they do provide a vehicle. The mutual fund UNWPX also has some overweight positions in Platinum mines. Unfortunately most of these investments are in South Africa. Political correctness precludes any seriously critical opinions of investing in So Africa. In the real world no matter what the reason, we see the former Rhodesia/now the beautifully euphonious Zimbabwe achieving the economic "miracle" of Haiti. South Africa is on this same road to economic ruin. Zimbabwe did not go genocidal and become rife with famine over night. We must allow for time to work to get the same results in So Africa. For this reason investments in So African platinum may in the short run be profitable, while in the long term be quite dangerous. Platinum on a fiat currency to size/weight ratio is indeed the easiest of the bullion coins to physically own and store. You pay a premium for that but if you are a long term investor it may be worth it. Unlike most exchange traded investments, bullion coins have the advantage of not showing up on your income taxes or lists of assets for estate planning and long term care provisions under Medicaid. If only Eliot had realized that gold bullion coins "come " in "all sizes" like the +1 oz Austrian or in 1, 1/2, 1/4 and even 1/10 ounce versions. If top world models prefer being paid in Euros, it is "hard" to imagine a courtesan not accepting something like a few American Buffalo.