My eBook explains why Platinum is dramatically mispriced. Today, April futures are trading at $849.3, up $15.30 on the day. June Palladium is $1544.9. Rhodium closed yesterday at $3250 per ounce. My view is that today's price bears no relationship to the equilibrium value of Platinum. Yes, I expect it to be higher by multiples. Having said that, I view the downside risk to be highly defined and limited. Recently the $823 area was tested; before that $810; and prior to that $781. By now, I dont expect Platinum to reach any of these levels again.
The theme is simple but the market doesn't have the proper perspective or context to understand what is really happening here. The Palladium premium over Platinum has NEVER been here and given ultimate substitution, is not going to last. I don't expect a collapse in the Palladium price but rather a significant move in Platinum.
Gold is a very different animal but I still discuss in my eBook where the fundamentals between the PGMs and Gold overlap.
I have not been historically active in Gold, Silver, or Platinum stocks, however as I have noted in an earlier blog post, and as I discuss in depth, I do have a real position in Sibanye-Stillwater, the South African miner that perceptively diversified not only out of South Africa, but out of Gold. This was accomplished with their acquisition 2 years ago of Stillwater, the only US PGM mine, producing primarily Palladium, but also the other PGMs, including the highest priced Platinum Group Metal, Rhodium.