The Conversation (0)
Reuters reported gold’s premium over platinum reached its highest in 7-1/2 months on Wednesday at over $210 an ounce.
Reuters reported gold’s premium over platinum reached its highest in 7-1/2 months on Wednesday at over $210 an ounce.
As quoted in the market news:
Platinum, which is chiefly used in autocatalysts and relies heavily on the European car market, fell to its lowest price this year on Tuesday at $1,374.80 an ounce, as it failed to benefit from the investment flows that have boosted gold.
Some traders have in the past taken platinum’s widening discount to gold, historically a cheaper metal, as a sign that gold is overvalued and platinum undervalued, suggesting they should sell gold and buy platinum. But in the near term platinum’s vulnerability means that strategy is risky.