So, I was just checking the charts, and boy, was I surprised. Gold was at $1829.10, and platinum was at $1829.00. I know that it's only $0.10, but still, it kinda caught me by surprise. What are your thoughts/concerns on this?
Actually, if you look at, for example, the 1981 price charts for both metals, you'll see that there were times that gold was higher than platinum http://futures.tradingcharts.com/historical/PL/1981/0/continuous.html http://futures.tradingcharts.com/historical/GD/1981/0/continuous.html
Platinum is a commodity. It's price is determined by supply & demand. Gold is a monitary asset where the price depends upon the state of the economy. 40-50 years of political dogma and US Ivy League economic & business theory put forth by tenured PHDs who have never worked a real job in their lives, has destroyed the US economy. The results speak for themselves. It's not surprising at all that gold is now equal to platinum in worth. If platinum was subject to the same knock downs that gold is getting from the banksters, the wall streeters, the Ivy leaguers, CNBC, and the gubment, you would see it being used to make hubcaps shiney. Gold rose $400/ounce in just July & August, almost a 27% increase. It should not be considered coincendental this is the same time period the congress and the President treated us to a summer long dog & pony show where the end result was the predicted increase in the national debt by $2.5T. The sole reason for this amount is that it is enough borrowing to get us past the next national election. This was their big "fix" and now this self serving bunch is off enjoying vacation. No solutions, just more reasons gold will keep going up. It's not too late to get onto the gold train however the tickets are going to cost more. People will say gold is in a bubble, but most Americans are still foolishly selling their gold. The haven't figured out that trading gold for some paper confetti with a picture of a dead president isn't such a good deal these days. When they do, and you see Walmart selling gold atoms embedded in a plastic card, then you will know the gold rally is over. Warning for the easily excited: (100% my opinion)
Gold was higher than platinum on at 3 other occasions I can recall during the volatility in the last month or so, as well as at least once in 2008. It just goes to show how much gold is in demand. Between all kinds of central banks buying this year at $1500+ prices, the continued surge in demand from China (who is telling all it's citizens to buy gold) and India, and the substantial monetary debasement going on in nations around the world this doesn't come as a big surprise. I am continuing to accumulate silver under the (historically justified in most cases) assumption that it will go where gold goes since it's a lot easier to pick up for cheap, and agree with Fatima that it's not too late to get on the train. A 45:1 Gold/Silver ratio is still high IMO, and I am waiting for it to drop a bit then plan to convert silver into gold.
This seems awfully circular. How on Earth can "supply & demand" be independent of "the state of the economy"?
