PLTM - The Platinum / Silver Spread Offers Security And Profit Potential

2024-05-05 01:11:23 ET

Summary

• Platinum has underperformed as an investment in the past 10 years, but hydrogen fuel cells remain a core long-term driver where palladium should provide less interference.
• Platinum has significantly lagged the recent rally in precious metals, and the disconnect with the price is silver is especially unusual.
• I'm complementing my long-term core platinum holding with an intermediate-term pair trade that is Long platinum and Short silver.

I've long been a fan of platinum ( PPLT ) ( PLTM ) ( XPTUSD:CUR ) as an investment. Performance of this metal has been absolutely terrible though, and nobody has made profits on platinum in the past 10 years unless they were opportunistic traders.

I continue to believe that platinum will have its day and that it's a safe place to park money in a hard asset, especially compared to gold and silver which have seen more speculative flows. I have a very long-term mindset to my core investment in platinum, but there's a more intermediate opportunity in play....

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