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Diversify into Platinum?

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Lakesidesun

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Is platinum at a viable entry point?

As time for evaluation of holdings is here, thoughts of buying more gold coins as I have in the past cross my mind. Should I consider silver? Should I consider proof silver and copper?

The answer seems to be platinum. I am buying small platinum coins, hoping to build a respectable collection in time. A half ounce of platinum is roughly equal to one ounce of gold, currently. I can transfer a bit of gold out, and platinum in for low cost. This diversification is nice because it is manageable, and an extension of an interest begun years ago. So, I know a little about platinum, that it generally rises with inflation concerns.

The thought hit me that platinum has to go higher if gold is to continue rising. I know enough about gold to suspect that it must continue rising on inflation fearrs. So, if platinum did not rise, gold would soon be equal in value. But platinum works where gold cannot, in computers and high tech, in production of valuable alloys for futuristic industry. So, it must remain more valuable.

Simple thoughts, and so much value riding on the "right" decision. The approach here is to continue to diversify into platinum very gradually for retirement purposes. Together with gold, a safe haven is produced that may at least keep pace with inflation for 20% of asset allocation. Whether it is the right call, will be known in 20 years. Today, I feel that diversification into silver may take too much time. That platinum is a vehicle that has a great track record over long-term is obvious. So, a choice that provides two possibilities in 20 years, makes the 10% that grew to 20% of assets two 10$% lots, in time.

It reminds me of 1999, when stocks were too high to remain in. I sold out, and bought gold. This quickly caused money to run low, so I sold my silver, to buy a bit more gold. The bug had bit me. What now? Give up on gold, when it has been such a great hedge? No, but lightening up causes cash to be available, and platinum is quite inviting when trading under 1300.

Ask me again in 10 or 20 years, if it was the right choice! Today, I am blinded by the price, but endeared by the prospects for future returns. At 1400+ for high grade collectible Platinums, the risk is real enough. That much is certain!

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