By MoneyMorning.com.au
Gold was down $3.31 yesterday. But, at last count, it’s still up $180.95 for the year.
And the gold bulls are rubbing their hands with glee.
Yes! They think. This will shake out the weak hands. And the skittish investors. This will give me a chance to build my gold holding on the dips.
And they’re probably right.
But while they’re distracted, drooling over the thought of all that cheap gold, here’s an opportunity they might’ve missed…
Platinum is down 19.8% for the year. And around 41% below its all-time high of $2252 an ounce.
So could there be an upside for platinum?
If you believe in precious metals as a store of wealth, this metal (which has suffered a much bigger knock down for the year than gold or silver) could be a good bet.
Don’t let the drop from $1900 to $1419 scare you off. Exchange Traded Funds traders are one of the biggest buyers of platinum in the world. And when the market started falling in August, the ETF traders sold out of platinum just like everything else.
But before you switch from gold to platinum, remember one thing: gold has a 5000-year history as the preferred medium of exchange. It’s not valuable because it’s shiny. Or yellow. Or because you dig it out of the ground. It’s valuable because it is an accepted medium of exchange.
That’s not likely to change. But if you can get over that and you’re looking to diversify your precious metals portfolio, platinum might be worth a look.
Aaron Tyrrell
Editor, Money Morning
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From the Archives…
How to Turn Paper Money into Silver and Gold
2011-12-09 – Kris Sayce
Will Silver Break Through $50 an Ounce in 2012
2011-12-08 – Dr. Alex Cowie
Investing in the Market for Survival and Prosperity
2011-12-07 – Aaron Tyrrell
China, the U.S. and the Scramble for Commodities
2011-12-06 – Dr. Alex Cowie
Santa Claus: A Market Rally Not Worth the Risk
2011-12-05 – Kris Sayce
For editorial enquiries and feedback, email moneymorning@moneymorning.com.au