No surprise i bet on this happening by end of 2012 and it finally came true. Question will be how long will this hold? Source http://seekingalpha.com/article/1112961-platinum-prices-move-above-gold-for-the-first-time-since-march-2012
I'm asking this out of sheer ignorance, but what is the significance of the relationship between gold price and platinum price? I've always thought they were apples and oranges as gold has primarily a monetary use and platinum an industrial use. What I'm asking is, "Why should we care which metal is trading at a higher price?" Thanks.
I can't speak for others, I don't know what they're doing or why. But 'Buy Low Sell High' raises the question 'What's Low?' and the correct answer is 'That's relative.' Buying the undervalued PGM is often the screamin' bargain, too. For a few years now, I've been bullish on PGMs while somewhat bearish on Au (at these prices). I'm surprised more bullionists own no Pt (or Pd!) and I bang the drum for Rh occasionally too.
IMO gold vs platinum ratio shifting towards platinum indicates that is expectation of increase in industrial output (stronger global economy) and reduction in shift towards PM due to fear of currency devaluation (debt debacle, QExx, credit rating cut etc).
I could accept that under normal circumstances. In this instance, though, I think it's highly likely the price of platinum is being driven by the "trillion-dollar coin" talk that is being heard. Many people will buy into anything and follow the herd and it seems this is just another example of that. What do you think about that reasoning?
I highly doubt it bullion sales are too small to make dent in Platinum spot prices and most of what is driving platinum is industrial use , i believe raise is due to increase in GDP forecasts combined with reduction in platinum production. Saw similar increase in September but slowdown overseas brought it down.
There may be no simple answer (Right or Wrong) but remember that the Pt mkt is much more thinly traded than Gold. Did the 'Platinum Coin news' have ANY effect? It appears NEWS LED MOVE. Coincidence and zero correlation? Personally, I doubt that. a) Rising bullion premium at the LCS/ebay would strongly indicate YES: retail bullion buyers following news played some role in this early POP spike. b) Rising institutional & retail interest in PPLT (again on radar) may be correlated to 'rumor/news.' See how "Platinum coin" news peaked 1/9/2013 and still high on 1/12/2013; then see how volume in PPLT more than doubled 1/11-1/14/2013. http://www.google.com/trends/explore#q=platinum%20coin&date=today%201-m&cmpt=q http://ycharts.com/companies/PPLT/volume
I view Pt similar to stocks. They usually proceed an economic uptick worldwide. Yes, sometimes they are wrong, but I believe Pt is moving up the reasons stocks are. My stocks are up about 30% in the last 2.5 months, (after tax holdings that is).
Just coincidence notice there is decline in platinum google searches but prices have gone up this week. There is better correlation with stocks as medoraman noted due to increasing optimism in global economy. On topic of platinum coins a lot of platinum bullions' where actually selling below spot in late dec-early january in ebay and other auctions but looks like they finally caught up.
