But you're looking at this only through the paradigm of the last 20 years during the era of mandatory catalytic convertors. Platinum and Palladium were around before then, they had factors driving their relative price, and they'll be around afterwards as well, when new factors will drive their price. That is the way of all markets.
I’m not sure where I sit with that. I appreciate your point and have thought about it but if the uses or rather the ‘demand’ for platinum keeps going down if the main use is in catalytic converters for diesel cars which are slowly declining then what is going to keep the price up?
It can’t surely be the jewellery business if the value of platinum drops so low, who’s going to want it?
Please excuse my niavety as I’m relatively new to the precious metal ‘world’ but I can’t see why platinum would peak above palladium anytime soon.
This is quite an old article, but it it worth a read:
Based on historical precedence, you shouldn't consider the short term price "overstretched" until it reaches about 12-15% above its 200dma.
So given the current prices of 1455/1350 gold is only about 7% above its 200dma and could well have further to run. $1550 By end of summer? I wouldn't bet in a big way against that happening..
The wealth is made over the long term when you can sit on your hands a ride a bull market up. Being long silver in a gold bull market is like being long tech stocks in an equities bull market. It will magnify the overall return, but it may well lag in the early part of the bull when investors are more cautious and go to the more recognised and less volatile variant. Past PM bull markets have seen gold return 500%+ and silver roughly double that. I have no reason to expect the next one will be much different.. No one will catch the very top or the very bottom, and neither should you try. Do most of your buying near the start, most of your selling near the end, and switch out to repeat the trick in another asset. Just getting this right once or twice over a lifetime will may you very wealthy.
I was recently looking at the early part of the last bull market (1999-). It's very easy to forget how it actually played out, but some people may be surprised when I remind them that silver did absolutely nothing of significant until well into the 2nd half of 2003! That's 4 years where you just had to sit and be patient.. and watch gold go up.. and wonder if silver was no longer considered as a precious metal.. all the stuff that we have had to bear through the last couple of years. Silver tends to lag, but it eventually catches up and eventually outperforms when the bull market starts moving up through the gears
I bought a bunch, added1/3 to my stash at 14.30, we were all over it, some panicked and thought it was doom n gloom while a lot were running and buying with everything they had...they could buy and sell on here there were no worries about a lack of buyers and sellers...as for selling now, they can sell here too for about spot with no commision being charged by tsf....offer 20 lot of generics or eagles or brits on here and see how long they take to buy them, ask for spot...finding buyers isn't a problem.