I decided to buy platinum instead of gold because of the following reasons:

- Surplus of gold - Asian banks said to be planning to unload gold to obtain cash - EU has not decided yet to base Euro on gold

- Russia, main source of platinum, is unstable and said to be beginning to use its platinum reserves for first time in 30 years - Industrial value of platinum (used in gasoline, etc)

This seems to be a good stradegy if Y2K effects last a few days or months, but maybe not so good if they last a few years or decades...

Can anyone comment on this?

-- anonymous (anon@anon.com), July 30, 1998

Answers

If you are that worried about Y2K why not buy both? Gold has many industrial uses as well, maybe more than Platinum. Also, silver is valuable. If economies collapse all metals will be valuable, including the big jar of loose change I have downstairs!

I still don't believe the economy will collapse, but I am open to discussion.

-- Buddy Y. (buddy@bellatlantic.net), July 30, 1998.

Don't forget, you must identify the scenario you are planning for FIRST. Should you believe y2k will be just an economic downturn, with rampant inflation, then any intrinsic coin will be good. A worse scenario would indicate small demominations of gold or silver, because what would you be able to buy with a bar of platinum? A still worse scenario would mean bartering for survival materials, and then a hand pump, plow, bicycle or non-hybrid seeds would be litteraly worth more than their weight in gold!

Lon

-- Lon Franck (lgal@exp.net), July 31, 1998.

- Surplus of gold - Asian banks said to be planning to unload gold to obtain cash...

Rumors abound. I have read the exact opposite, that the Bank of Japan is secretly purchasing large quantities of gold to create a reserve for the yen. There is not a surplus of gold on the market, nor does Japan have a surplus of gold reserves. They have a surplus of dollar reserves and US Government debt securities, neither of which will do them any good in rescuing their economy.

- EU has not decided yet to base Euro on gold. Not true. Recently announced reserves will be around 20%. This is not considered 100% backed, though, but it is a far cry from the U.S. and it's reserves vs. dollars in circulation.

- Russia, main source of platinum, is unstable and said to be beginning to use its platinum reserves for first time in 30 years - Industrial value of platinum (used in gasoline, etc) That is entirely plausible.

This seems to be a good stradegy if Y2K effects last a few days or months, but maybe not so good if they last a few years or decades... My gut instinct is that gold is by far a better wealth retention instrument, however silver, platinum and palladium will all see great growth, that is after the gold market is shut down due to panic purchasing, PM derivative contract defaults, skyrocketing prices, etc.

-- Discover (discover@rof.net), August 02, 1998.