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Tale of the tape - platinum explodes, gold struggles

Commentaries & Views

With the U.S markets closed on Monday but trading electronically, we saw equities make new highs across the board. Gold was lower, silver higher and platinum exploded to seven-year highs. The rally in platinum continues this morning.

Taking a brief look at history, in 2008, platinum was three-times the price of gold and by 2011, they were the same price. Since 2011 when gold made new highs, gold overtook platinum. When gold made new all-time highs last August, gold was twice the price of platinum. It appears that platinum is on track to pass gold once again.

There are no guarantees or assurances that the rally in platinum and silver will continue to overtake gold, but based on today’s price action, that certainly appears to be the case. The gold/silver ratio continues to collapse, trading just over 60:1.

With all that being said, the bottom line is simple; we are long silver and platinum and short gold. This pattern can last another day, months, or years. No one knows the answer, so follow the path of least of resistance.

On Saturday we presented our Hedging Model. Below is the recording

Learn to Hedge your Portfolio Recording from Saturday

We have also included a registration link for session 6 on Friday February 19th at 5:00 EST

2021-02-19 Options Training Session 6 Register here

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.