Tale of the tape - platinum explodes, gold struggles
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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
We have also included a registration link for session 6 on Friday February 19th at 5:00 EST