All that glitters is not gold. Especially when another, even more precious, metal is trading at a historical discount to gold.
Many investors are familiar with the gold/silver ratio, or that recently that ratio was saying it was time to buy silver. But platinum, the "rich man's gold," has also seen its price fall relative to gold's. In fact, platinum is now cheaper than gold -- something that has only happened a few times in the past 100 years.
What this means is that platinum prices are probably going to move up over the next few months.
Platinum is the world's third-most traded metal, and there is a lot less of it than either gold or silver. It's so rare that it's been somewhat seriously suggested that asteroids be mined to find more.
Platinum is also arguably more useful than gold. It is used for everything from jewelry to LCD monitors to dental equipment. The biggest source of demand for platinum is the auto industry. It uses 40% of the global supply, mostly to make catalytic converters.
Platinum prices fell 26% in 2015. They're up 11% so far this year, but that's behind the performance of gold (up 21%) and silver (up 25%).
Platinum normally costs more per ounce than gold. For the past decade, it was on average 34% more expensive -- sometimes even double the price of gold.
Many investors are familiar with the gold/silver ratio, or that recently that ratio was saying it was time to buy silver. But platinum, the "rich man's gold," has also seen its price fall relative to gold's. In fact, platinum is now cheaper than gold -- something that has only happened a few times in the past 100 years.
What this means is that platinum prices are probably going to move up over the next few months.
Platinum is the world's third-most traded metal, and there is a lot less of it than either gold or silver. It's so rare that it's been somewhat seriously suggested that asteroids be mined to find more.
Platinum is also arguably more useful than gold. It is used for everything from jewelry to LCD monitors to dental equipment. The biggest source of demand for platinum is the auto industry. It uses 40% of the global supply, mostly to make catalytic converters.
Platinum prices fell 26% in 2015. They're up 11% so far this year, but that's behind the performance of gold (up 21%) and silver (up 25%).
Platinum normally costs more per ounce than gold. For the past decade, it was on average 34% more expensive -- sometimes even double the price of gold.
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