Platinum or Gold – Where Will You Profit Most?

We consistently get the questions, “Should I buy Platinum or Gold right now?  Which has greater price growth potential?”

While we expect precious metals price gains, even sizable gains in gold, silver and platinum over the next several years, platinum is uniquely poised to appreciate substantially.  See the following chart:

This chart shows the platinum price as a percentage of the gold price.  Currently platinum trades at 73% of the gold price – $972 vs. $1,274.  Platinum has not traded at such a discount to gold since 1982.  In 1982, platinum rose until it was 239% of gold or more than twice the gold price.  That means if gold didn’t increase a dime and platinum rose the same 239%, platinum would be over $3,000.  If gold rises, as we expect it to, then platinum may rise even more.

The whole purpose of this article is to point out how significantly platinum is undervalued. Typically platinum trades above the price of gold, or a ratio greater than 1:1 (above the aqua blue line).

I personally am holding more platinum that I ever have before and swapped some of my gold to do so.  You may consider doing the same.