Email of the day (2)
Comment of the Day

November 09 2011

Commentary by Eoin Treacy

Email of the day (2)

on an addition to the Chart Library:
"1) A few weeks ago on the audio I believe you said you were going to research the long term link between Platinum and Gold prices. Just wondered what you had found out.

"2) Could you please put DB x-trackers DAX ETF in the Chart Library? Thank you for your service."

Eoin Treacy's view Thank you for this reminder and I have added the DAX ETF to the Chart Library. I believe I mentioned the platinum / gold ratio when it had returned to an historically interesting level near parity.

Over the last 20 years parity between the metals has generally been a sign that platinum was about to outperform gold. However, my point was that this conclusion was based on a comparatively short timeframe since our platinum data only goes back to 1988. I would dearly like to see platinum price data that goes back to the 1970s. Equipped with a longer-dated ratio we could ascertain how the metals behaved relative to each other during secular bull as well as secular bear markets. I have not yet succeeded in locating such a price series.

At present the platinum / gold ratio is currently testing the 1991 low near 0.93 but remains in a relatively consistent downtrend and little has happened to question the continued trend of gold's outperformance.


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