hey everyone welcome to my channel and welcome back to my subscribers this is bald guy money i am bald guy and today i am talking everything platinum is it really the best deal on the precious metals market right now now i know many of you out there are looking at platinum as a potential alternative to gold which gold is very expensive right now but there's a lot you need to know before pulling the trigger on platinum bouillon as always none of this is advice and i will ask you to take a moment right now


to please drop me a like if you like these videos that i make for you the viewer please let me know you want more videos like this by giving me the feedback with the like button okay so with that out of the way i want to say that this video is a response to a question i received from a long time viewer and somebody who regularly comments on my videos and that is gold and silver stacker what's going on man i'm making this video for you buddy so i hope you're doing well and and here is what they recently asked


me so i'm just going gonna read it for you uh thanks for the video this is my video that i did recently about traveling with money he commented on uh so thanks for the video off topic question what's your take on platinum i'm really bent on gold which is good uh but there's some good deals on one ounce of valcambi bars this weekend so he's asking about platinum and that's a great question from a great viewer so let's dig into this topic so now that we begin let's take a look


at a platinum price chart i think that's probably the best way uh to begin this video and what i've done here is i've chosen the 20-year chart to really give you all an understanding of what's happening over a long period of time with the price of platinum on the left side of the chart you'll see the price in in us dollars per kilogram and on the scale on the right that shows the price per ounce which is what we're actually going to be focusing on here so you can see there was a bit of a blow


off top in 2008 and we're not going to focus on that because that was driven actually by supply concerns due to energy shortages in south africa where a lot of platinum is mined and once those concerns subsided the price fell dramatically and subsequently rose again which is where we're going to start the real analysis now you can see when platinum bounced back from its low around 800 it did a little more than a 2x rising up to 1 746 dollars per ounce in april 2010 where it chopped sideways for a couple


years until starting a definitive downtrend in 2013. since then it has dropped a total of 42 percent with its initial 58 drop seen during this period to march 2022 with a small bounce back of 36 resulting in that 42 percent total drop i just mentioned now all of this is very important because the main argument as to why platinum is underpriced and why people think it's such a good deal is because it's dropping ratio versus the price of gold for those people they see the price of platinum more like this


and even back before the 2008 blow off top when the price of platinum was strong in 2006 the ratio in price was 1.95 meaning that for every one ounce of platinum back then you could get 1.95 ounces of gold during the blow-off top event that went as high as 2.34 so again meaning that for every one ounce of platinum you held you could exchange that for about 2.34 ounces of gold which is actually a much different story versus where we are today at 0.51 which means that for one ounce of platinum you can basically trade that


for about a half ounce of gold and as the theory goes if the price of gold is correct or stable or unchanging however you want to define that over the next little period of time and platinum can get back to a ratio of even 1.5 versus gold that means the true price of platinum should actually be around 3 000 per ounce meaning a 3x for every ounce of platinum you basically buy today with the price hovering around one thousand dollars per ounce now as you all know i am only here to present the facts


i don't have any platinum at all so i'm really kind of agnostic when it comes to whether or not the the price of platinum goes up or down it really doesn't matter much to me as i don't have a horse in this particular race but i do want to point out two very important facts that lead me to believe that platinum and platinum bouillon will never reach a two to one ratio versus gold ever again point one is this industrial demand for platinum is falling and is expected to continue to fall as alternatives to


platinum are used increasingly in the industrial process as well as the fact that more and more electric cars are going to be hitting the road and this is why and if you are considering platinum as an investment vehicle you absolutely have to listen to this part of the video because it's very important today the majority of platinum demand so it's about 50 is for use in catalytic converters in internal combustion engines used in automobiles so cars and trucks now in a nutshell the platinum accelerates the


oxidation of excess petrol used to power the engine so if there are any car enthusiasts out there who think you know maybe i got it wrong please correct me in the in the comments section but what i really want to say is with more and more electric vehicles hitting the road a trend that is really being accelerated by laws like we've already seen in the european union which will restrict the production of internal combustion engines starting from 2030 logic can only dictate that the demand for platinum should go down which


obviously should drive the price of platinum subsequently down as well and although it's true platinum is used in fuel cells which are present in electric cars and and this is really the main argument that a lot of platinum bulls use they say well as the use of platinum and catalytic converters is slowly phased out the use of it will increase in fuel cells but before you make that assumption and think that the price of platinum is going to rise over a 10 to 15 year period based on that assumption


what you have to know is that alternatives to using platinum and fuel cells are being developed today and they range all the way from using spinach to this which is actually a very practical alternative to using uh platinum which is cobalt and in fact this has been being developed since 2020 as per this article from the agron national laboratory so that in itself is enough to turn me off to platinum as an investment vehicle as a store of wealth whatever you want to call it because at best 50 of the demand for platinum is


standing on shaky ground now to my second point and this is another important point especially when we're looking at the bouillon aspect of platinum is the fact that there is a there's a clear lack of history when it comes to using platinum as currency or as a store of value and this point is really a rebuttal to those who say okay industrial demand for platinum may decline but platinum is ultimately rarer than gold and silver and is used as a store of wealth and bouillon so because it's rarer than gold


it should in theory be more expensive than gold so that is actually not a bad argument at all it makes perfect sense on the surface that if there's less platinum than gold then platinum should in theory be more valuable than gold but it ignores one very critical factor and that is the demand for platinum as a store of wealth as many of you know i am an ancient coin collector and a big fan of history specifically roman coins and roman history i recognize the fact that gold and silver have been recognized as


either money or a store of wealth for thousands of years it's undeniable and this is my point of view going all the way back to my very first youtube video and considering that history the history of gold and silver demand for both of those medals today as a store of wealth is still strong and rightfully so in my opinion but for platinum platinum boolean on that is it doesn't really occupy a large space in that territory in fact looking at history platinum itself really wasn't widely minted or used as a currency


until the 18th century by the spanish empire then next adopted by the russian empire in the 19th century and only minted as a currency as recently as 1997 by the u.s mint so by those standards when you're comparing platinum to the to the rich history of gold and silver you're talking about more than 5 000 year history of gold and silver being used as a store of wealth or as direct currency as it was in the roman or greek times platinum is barely just a little bit older than bitcoin when you really think about it


so that is is really the the crux of my argument is that again there is not a rich history of using this either as a store of wealth or as a currency but when it comes to platinum the final nail in the coffin at least from my point of view apart from the declining industrial demand and lack of history as as money or a proper store of wealth is that for the average person it is very difficult to differentiate versus silver and i know most of you out there watching this video are probably a little more educated than the average


person when it comes to precious metals or bouillon and you could probably easily tell the difference between a platinum coin and a silver coin i get that but remember you are in the minority there's a reason you're watching this you probably have a thirst for knowledge that most other people who are not watching this don't have so without that wide awareness of the differences between silver and platinum or even white gold which you know platinum could easily be mistaken for white gold it is very difficult to


exchange unless you're exchanging with experts on the topic thus making the overall demand for platinum bouillon low which has historically been the main challenge to it becoming widely accepted as a currency as i mentioned dating all the way back about 300 years ago to the spanish empire and those are my reasons my dear viewers uh why i don't buy platinum or platinum bouillon now please tell me what you think about platinum bouillon in the comments section and please give me a like if you


enjoyed the content because it's very important in helping me grow my channel and grow my audience and get this message out to more people that said i wish you all happiness i wish you all health and i do hope to see you in the next one bye