Platinum & Palladium

Today is Wednesday, 2/27/19. While Platinum is up to 870.9, looking at April futures, Palladium is down 36.2 to 1483.5. As a reference, Gold is also down 2.9 to 1325.5 and Silver 11.6 cents to 15.81.

Historically, all of the precious metals tend to move together, but over the past many months, Palladium, given its very strong bid and supply tightness, has typically (though not always) run, whatever the market behavior of other PGMs.

My thesis is that Platinum is dramatically cheap to Palladium. It doesnt take great wisdom to come to that conclusion, looking at historical pricing when Platinum has most often traded at a premium to Palladium, let alone a discount of almost 600 dollars. :-) Same can be said about Platinum's relationship to Gold which today, continues to be at historic discounts. 

So, here we have a market where Palladium is selling off from its pricing north of 1500, and even with that pressure, Platinum remains positive. Let's see how the market closes... but ultimately I do expect this kind of behavior to be more the norm as Platinum's value becomes recognized. As I note in my eBook, my bullish view is a function of the rarity of the Platinum Group Metals, and while that thesis does apply to all of the PGMs, it particularly applies to Platinum, trading at such a discount, and to low priced but highly useful and valuable Ruthenium.  For those of you who have not yet purchased the book, let me also just be clear that I do in fact have a position in Ruthenium and in Platinum; a small position in Palladium coins; and stock in Sibanye-Stillwater.

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