Hi,On the whole Platinum group metals do better than gold in the recovery phase of markets as there is a demand for both industrial and precious metal uses.This condition will eventually prevail when a full recovery is on the way,which does not seem in the offing any time soon.Till then choppy trading will probably move them practically almost. in tandem
Hi Barry, problem I have with that theory is that it is infinitely more expensive to mine platinum than gold. As for gold being more expensive than platinum, the main driver for plat is the vehicle industry, which has been trying to substitute for many years now. Those R&D budgets must by now have started to yield results. But I understand that Plat is an important component in fuel cells as well? So its industrial use will always be there.
The long term prospects for platinum are very good. New industrial uses are being added to. There is hardly enough for consumption and a likely shortage going forward. (only enough last year because Russia sold a load) Platinum production is less than 5% that of gold annually. We could see a much higher price in the next few years.
On a relative value basis (relative to the gold stocks that is,) it is probaly time for the platinum counters to wake up. If gold itself breaks upwards from here, you can be pretty sure that platinum and paladium will follow. Since there are no other platinum miners worth mentioning (and given developments in Zim,) the platinum stocks will follow the metal. IMO.
Hi Threshhold...I agree..I think that it is now the right time to get into platinum for say a 6 month or so punt and see what happens...By the way you get your BEG's at 5 cents a couple of months ago? If so...well done