Gold is now worth more than Platinum!

Discussion in 'Metal Futures' started by peilthetraveler, Aug 9, 2011.

  1. Platinum $1717 per oz
    Gold $1771 per oz

    When I got married I bought platinum wedding bands when platinum was $1300 per oz and gold was around $650.

    Guess I should've got the gold wedding bands. :(
  2. JPope


    Whats your thought on this as a spread trade?
  3. Thanks for the tip. Gold (rare) would never be worth more than platinum (more rare; more useful) in a real market. One or the other is overpriced right now and is overdue for a huge correction.
  4. JPope


    It's probably not for the faint of heart, but I think there is size putting this spread on in here and money to be made on it longer term.

  5. Platinum is about 33% rarer than gold. (Gold occurs at .004 ppm and platinum at .003 ppm) So when gold is trading at 1750 per oz, platinum naturally should be about $2300 per oz or so. Of course the markets dont always agree, because silver occurs naturally at .07 ppm which means silver is worth about 1/17.5th what gold is and obviously silver is not $100 per oz today like it should be.

    But if you want a good trade...Look at Rhodium. Rhodium is about $1800-$1900 per oz right now. It is 3 times rarer than platinum and 4 times rarer than gold. (occurs .001 ppm) Rhodium should be about $7000 per oz right now.

    And since we are talking about metals, might as well throw in palladium. That occurs at .01 ppm. So gold is 2.5 times as rare as it. Gold is trading at $1750 so $1750/2.5 = $700. Palladium is trading at $742, so its not far off the mark.

    Although if you look at past charts, you will see Rhodium can really move one way or the other and its very illiquid. (I believe the spread is $100 or so)

    Rhodium is a sure winner, although time is not on your side with that trade. You might wait years for it to run back up to $10,000 per oz and you definately dont want to trade it on thin margin.

    Palladium....when it goes down, it really goes down. As for a spread its an easy short palladium/long gold.

    Platinum...I would just go straight long with this. No use going short gold/long platinum when the central banks are buying metric tons of gold, as it could take platinum a while to catch up.
  6. Link?
  7. Top: Oct Gold/Plat Spread
    Mid: Front ES
    Low: Front Crude
  8. Rare is just one matter, supply and " DEMAND" is key with this occurrence, Platinum is mostly used in automotive industry , and down economy means less bought, hence gold would like stay surpassed if the world markets continue this volatility.
    #10     Aug 10, 2011