Platinum Trades At New Low To Gold

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.

Click here to read the full Reuters report.