I’m a gold and silver dude.
But for the first time ever, I went behind their backs and bought a different kind of precious metal.
I’ll get into what kind of metal in a moment.
As you know, I’m from the Second City.
Chicago is broken up into all these tiny little neighborhoods.
One of my favorite neighborhoods in Chicago is called “The Gold Coast”.
Chicago’s Gold Coast has been home to big mansions and the well heeled since the great Chicago fire of 1871. The Gold Coast really earned its reputation in the 1950’s and 60’s when guys like Sinatra and Hugh Hefner ran wild across the town.
Sinatra loved to stay at either the Ambassador East or the Drake Hotel. He’d hit dinner spots like the Pump Room, Twin Anchors, Rosebud or Mister Kelleys (now known as Gibsons). I personally love the Drake Hotel. On top of their bar, you can see where Joe Dimaggio and Marilyn Monroe carved their initials into the woodwork one drunken night.
Just down the street from the Ambassador East Hotel, Hugh Hefner started the original Playboy Mansion at 1340 N. State Street.
These dudes are gone now but their ghosts can still be felt on the Gold Coast.
People still flock to fill the legendary spots like Gibsons, Rosebud and Tavern On Rush.
Each of these restaurants have spectacular outdoor patios that line the Lambo filled streets of the Gold Coast in the Chicago summertime. It is definitely a place to see and be seen.
This last summer, I was dating a girl named Danika.
We hung out in the Gold Coast.
As we would walk past the outdoor patios on our way to dinner, I always felt this strange sensation.
Like everything I was doing was being watched intently. It was the weirdest sensation.
And then one day I figured it out.
I wasn’t being watched, I was getting hit by friendly watching fire because of who I was walking with.
You see, Danika is tall and has platinum blonde hair. (No pic sorry hahaha).
Wherever she goes, people watch and pay attention.
It is incredible.
She is on a magic bus ride in life that very few of us mere mortals can comprehend.
That’s not the point.
What this made me think of was it may be a sign that even though I’ve been a gold and silver guy all my life, it was now time to pay a little attention to platinum.
Not the blonde.
I’m talking about the precious metal platinum.
There is a lot of talk in the precious metals niche right now about the gold silver ratio and how inexpensive silver is when compared to gold historically speaking.
This is legit talk. Read my previous article called The Great Gold Silver Swap of 2018 if you want to dig in to the current gold silver ratio.
What there isn’t a lot of talk about is the current platinum gold ratio and how we are seeing somewhat historically cheap platinum prices.
Today’s gold spot price came in around $1220.
Today’s platinum spot price checked in around $840.
So gold is about $400 more expensive than platinum.
The neat thing is that since 1971, on average, platinum is about 25% more expensive than gold.
So with that number in mind, you would see platinum priced around $1580 an ounce to get back to the historical average.
I know many of you are swapping some of your gold for silver right now and maybe it is time to start swapping some gold for platinum too.
Can Platinum Go Any Lower?
The platinum experts I’ve spoken to say the metal is just about trading at the cost of production right now. If it uncharacteristically goes to the lows of the 2008 or 2004 crashes which would be around $750, then many mines will close and the price will rise again due to scarcity.
Never say never but to me it doesn’t seem like there is much downside to platinum right now. I guess gold could crash which would bring the platinum gold ratio back to the average but that also seems unlikely.
What Is Platinum Used For?
Platinum is used in both industry and investing.
Around 35% of all platinum mined each year is used for jewelry or investment.
The other 65% is used up by industry to make medical, electrical, chemical and automotive components like catalytic converters. The automotive industry actually uses about 40% of all platinum mined.
Sounds Good, But What Happens To Platinum During A Financial Market Crash?
Yes, the apex predator and biggest safe haven in financial panics is gold, but if gold is a wolf, platinum is a coyote. In past times of financial distress, platinum has followed gold’s lead as a safe haven asset that tends to be hoarded. The technicals of platinum and gold also are similar but since platinum is a smaller market, it is usually more volatile and makes bigger moves.
So Am I Swapping Some Of My Gold For Platinum?
Not a ton, but a little bit.
With the platinum gold ratio being so much in platinum’s favor right now it just makes sense to me. When the platinum I buy right now reverts back and becomes more expensive in relation to gold, I’ll probably sell it to increase the size of my gold stack.
Where can you get platinum?
Call them at 1-800-822-8080 and tell them world famous Hunter Riley III told you it’s time to go platinum for a little while. They can get you the precious metal, not the blonde.
If you’re looking for a platinum blonde instead, I suggest getting a table outside at Tavern On Rush on the Gold Coast in Chicago on a Sunday afternoon in June.
It is getting cold in Chicago.
Snow is falling as I write this.
Almost time to head south for the winter.
That Sunday in June sure seems a long way off.
Maybe I’ll see you there.
Hunter Riley III
Author of the Amazon #1 Best Seller Stack Silver Get Gold