A very rare sight, physical platinum and palladium now has a negative premium in the Sprott trust. So you can buy platinum and palladium at a discount! This could indicate to a future drop in platinum and palladium.
I was very bullish on platinum before, but today the platinum to gold ratio has gone up tremendously from 0.85 to 1.03. I think it’s time to take some profits.
Since this week, you can buy the Sprott Physical Platinum & Palladium Trust on the NYSE.
The platinum-gold ratio has been rising and I believe this ratio will continue rising. So now is a good time to invest in physical platinum and palladium.
Since 2011 the gold price has been rising a lot, while platinum was going down. One of the reasons for this drop is weaker industrial demand due to the economic crisis. Other reasons are unwinding of funds and China slowing down. Platinum can be classified as a precious metal due to its rarity (30 times rarer than gold), but it’s also an industrial metal (high heat and corrosion resistance). So it doesn’t hold up as well as gold, which is money. The reason why platinum should be more expensive as gold is because platinum is very difficult to mine. But there are many other reasons out there, to find out click here.