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The Platinum Doubler of the Year, Courtesy of… Gold?

Back in March, I recommended a broad play on platinum that's returned 56% more than the S&P 500 over the same period. Those gains didn't happen by accident. You see, gold and platinum have a special relationship, the so-called "gold-platinum ratio." In fact, since platinum is about 30 times more rare than gold, it's usually the more expensive of the two metals. But right now, the ratio is reversed, and gold is the more expensive metal. That situation never lasts, and we're actually seeing the gold-platinum ratio right itself now. It's been partially responsible for some very nice gains in both metals recently... Platinum prices are up more than 11% since March in a classic case of low supply and high demand. Output from South Africa, the world's top producer, has plunged amid dwindling capital investment and spiraling labor unrest. On the other hand, demand from car makers, the most important platinum consumers, in need of autocatalysts has surged due to dramatically higher auto sales. What's more, the platinum deficit is growing, and many miners have seen their share prices more than double. Now I've found the one mining stock with the most room left to run. Like I said, the ratio is swinging back in platinum's favor right now. So there's still time to participate in this lucrative bull market and leverage your gains in the process... ...but not for much longer... Tags: Commodities To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2016 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post The Platinum Doubler of the Year, Courtesy of… Gold? appeared first on Money Morning - We Make Investing Profitable .
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