ANGPY - Profit Off Palladium/Platinum Spread Extremes With Anglo American Platinum
The palladium/platinum price ratio is way out of whack and there’s money to be made on regression to the mean. The ratio made a new all-time low on March 4th of 0.552, beating the previous record set on January 22, 2001 at 0.559. Palladium (PALL) is now almost twice as expensive as platinum (PPLT). Experienced traders who use futures can probably employ spreads to profit off the severe imbalance here, but there are much simpler, less risky, and less time-constrained strategies than futures spreads or shorting the low-liquidity ETFs. Anglo