When precious metals aficionados discuss bullion investments they usually cite gold and silver. But what about platinum? Does the $1,400-plus precious metal get no love from the metals community? Apparently not.
According to Bloomberg News, five months after the United States Mint began to produce coins made with platinum sales have significantly declined. The reason for this is that investors still favor gold and silver.
Following a six-year hiatus, the Mint made the decision to resume the production of platinum coins earlier this year. In total, it sold 13,600 ounces this year, including zero ounces last month. Meanwhile, the Mint had sold 313,500 ounces of gold coins and 27.71 million ounces of silver in the same timeframe.
Investors have persisted in flocking to bullion amid concerns that the Federal Reserve is destroying the U.S. dollar by inflating the money supply in order to stimulate economic growth and various sectors of the market, particularly labor and real estate.
For thousands of years, gold and silver have been the choice for monarchs, governments, civilizations and businesses. These metals remain as popular today as they were centuries ago. Platinum on the other hand is a rare metal that has only been made available to the general public since the 18th century.
“Platinum has been around for some time, but I would think of it more as an industrial metal,” said Timothy Green, 78, an industry historian, in an interview with the business news outlet. “Gold, on the other hand, has been associated with every old civilization. It is in a class of its own.”
Despite the paucity of sales, the U.S. Mint will not be discontinuing the production of platinum coins. However, Tom Jurkowsky, a Mint spokesperson, noted that it will take a wait-and-see approach to the situation.
Long-term purchasers of gold and silver will remain adamant in acquiring gold and silver and they won’t make the sudden conversion to buy an industrial metal such as platinum.
“The platinum coins are gorgeous,” said Kevin Lipton, who has been selling coins for four decades and owns Kevin Lipton Rare Coin Inc. “While I do sell a few coins, it’s not really that much in demand. We live in a society that covets gold and silver.”
At the time of this writing, a 2014 American Eagle One Ounce Gold Proof Coin is selling for $1,660; a 2014 American Eagle One Ounce Silver Proof Coin is listing for $52.95; and a 2013 American Eagle One Ounce Platinum Proof Coin is advertising for $1,800. (All prices via U.S. Mint.)
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