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

About mcturra2000

Computer programmer living in Scotland.
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