With the U.S markets closed on Monday but trading electronically we saw equities make new highs across the board. Gold was lower, Silver higher and Platinum exploded to seven-year highs. The rally in Platinum continues this morning.
Taking a brief look at history, in 2008 Platinum was 3 times the price of Gold, by 2011 they were the same price. Since 2011 when Gold made new highs Gold overtook Platinum. When Gold made new all time highs last August Gold was twice the price of Platinum. It appears that Platinum is on track to pass Gold once again.
Obviously, there are no guarantees or assurances that the rally in Platinum and Silver will continue to overtake Gold but based on today’s price action that certainly appears to be the case. The Gold, Silver ratio continues to collapse not trading just over 60-1.
With all that being said the bottom line is simple, we are long Silver and Platinum and short Gold. This pattern can last another day, months, or years. No one knows the answer to that making the easy answer, follow the path of least of resistance.