Sell Gold / Buy Platinum

December 8, 2023 Leave a comment

I’ve been subtly chirping about my interest in Palladium and Platinum prices.

For those you like pairs trades, I see a Short Gold / Long Platinum opportunity.

While this may be sacrilege for those nutty gold bugs to read, I’m being rather objective.

The chart below shows Platinum and Gold plotted over each other while the lower study is the correlation coefficient.

Just because they are both precious metals, it doesn’t mean they move in tandem let alone correlated.

The rectangles show not too many moments when the correlation was close to 1.

Otherwise, there were many times when Platinum and Gold were negatively correlated.

December 8, 2023

by Rob Zdravevski

rob@karriasset.com.au

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Gold exploration declines by 55%

May 21, 2013 1 Comment

English: Pouring molten gold into ingot mold a...

The volume of drilling activity in the global gold industry has fallen by 55 per cent in the past 12 months, new data from research group IntierraRMG has found.

Less exploration means supply.

Less gold supply should mean a higher gold price, ONLY if gold demand stays steady or rises.

Such a scenario will benefit gold companies who have a proven resource.

Often, the best thing such a company can do, is to leave the gold in the ground rather than spending hundreds of millions of dollars trying to extract it.

Management who think that success is measured by how much gold they “pour” can prove to be a handicap for its company’s share price, especially when capital is scarce.

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