The case for preferring platinum over gold miners

The “spread” between platinum and gold make the former more attractive.

Here are the prices of both commodities in USD/Oz:

           Decade ago   today
Platinum:     1104        895
Gold           605       1133
              ----       ----
Spread (diff) +499       -237

According to denvergold  the average spread over the last decade has been $+180/oz. Over 20 years it has been $+226/oz.

In fact, if you look at the 20 year chart, it seems that platinum was never more unloved relative to gold.

So, as a contrarian investor, one should be more bullish on platinum than gold.

Update 29-Dec-2016

I thought it worth presenting the platinum-gold spread on denvergold:

10-year basis:

2016-12-29 10_15_25-Platinum to Gold Spread.png

20-year basis:

2016-12-29 10_16_13-Platinum to Gold Spread.png

Advertisements

About mcturra2000

Computer programmer living in Scotland.
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s