Update: 5 Reasons To Buy Platinum - Not Gold, Silver
Platinum soared to a fresh
three-month high Tuesday, rising for six sessions straight. The white
metal's price eclipsed gold for the first time since March 2012.
In the futures market, platinum prices surged 1.69% to $1,693.00 an ounce. Gold prices added 1.03% to $1,686.00 an ounce.
Platinum has been outshining gold and silver the past month, and strong evidence suggests a brighter future lies ahead for it. ETFS Physical Platinum Shares (PPLT), the largest ETF tracking the precious metal, has jumped 9.45% year to date. That's while ETFS Precious Metals Baskets Trust (GLTR), tracking gold, silver, platinum and palladium, added 2.2% over the same period.
Platinum
traded at an average price of $1,561 an ounce last year. The metal's
average price will increase 11% to $1,738 an ounce this year, according
to Bank of America Merrill Lynch's "2013 Metals & Bulks Outlook"
released in late November. Its analysts expect a production shortfall
this year owing to work stoppages in South Africa, stagnant Russian
output and higher demand from jewelers and the auto industry.
Here are five reasons why platinum could be better bet this year than gold and silver and may be of interest to successful investors.
1. Platinum bullion and miners are outperforming their gold and silver counterparts in the short run and past year.
ETFS Physical Platinum Shares jumped 6.6% in the past week, while gaining 4.2%in the past month and 2.8% in the past three months.
SPDR Gold Trust (GLD), the main proxy for gold bullion, added 1.6% in the past week, while sliding 0.6% and 3.1% in the past month and three months, respectively.
In the past year, PPLT added 12.5% while gold eked out a mere 2.4%.
IShares Silver Trust ETF (SLV) gained 3.6% in the past week, while diving 2.4% in the past month and 3.9% the past three months. It rose 5.6% in the past year.
Going out five years, platinum was the underdog. It's been flat, while gold returned 25.7% and silver 33.7%. So platinum could be due for a reversion to the mean or catch-up trade.
PPLT is trading above both is 50- and 200-day moving averages, showing it's in a solid uptrend. By contrast, gold and silver are trading below the 50-day line and toeing back and forth over the 200-day line, which is very weak price action.
Gold miners and platinum miners both lost 15% and 13%, respectively, in the past year. But in the short-run, platinum miners have taken a lead over gold miners.
In the futures market, platinum prices surged 1.69% to $1,693.00 an ounce. Gold prices added 1.03% to $1,686.00 an ounce.
Platinum has been outshining gold and silver the past month, and strong evidence suggests a brighter future lies ahead for it. ETFS Physical Platinum Shares (PPLT), the largest ETF tracking the precious metal, has jumped 9.45% year to date. That's while ETFS Precious Metals Baskets Trust (GLTR), tracking gold, silver, platinum and palladium, added 2.2% over the same period.
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Here are five reasons why platinum could be better bet this year than gold and silver and may be of interest to successful investors.
1. Platinum bullion and miners are outperforming their gold and silver counterparts in the short run and past year.
ETFS Physical Platinum Shares jumped 6.6% in the past week, while gaining 4.2%in the past month and 2.8% in the past three months.
SPDR Gold Trust (GLD), the main proxy for gold bullion, added 1.6% in the past week, while sliding 0.6% and 3.1% in the past month and three months, respectively.
In the past year, PPLT added 12.5% while gold eked out a mere 2.4%.
IShares Silver Trust ETF (SLV) gained 3.6% in the past week, while diving 2.4% in the past month and 3.9% the past three months. It rose 5.6% in the past year.
Going out five years, platinum was the underdog. It's been flat, while gold returned 25.7% and silver 33.7%. So platinum could be due for a reversion to the mean or catch-up trade.
PPLT is trading above both is 50- and 200-day moving averages, showing it's in a solid uptrend. By contrast, gold and silver are trading below the 50-day line and toeing back and forth over the 200-day line, which is very weak price action.
Gold miners and platinum miners both lost 15% and 13%, respectively, in the past year. But in the short-run, platinum miners have taken a lead over gold miners.
Read More At IBD: http://news.investors.com/investing-etfs/011513-640601-platinum-outperforming-gold-silver.htm#ixzz2HDYaaIwG
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