Platinum Over Gold: It's a 'No-Brainer'
San Francisco (Mar 15) Let's say that you want to buy a house. You find a four-bedroom, plenty-of- "trimmings" house in a nice neighborhood, offered at $1.2 million. Assume that the housing market is in a bullish cycle, maybe coming off a decent bottom of a longer-term downtrend.
Now, down the street but with a much nicer view is this beautiful six-bedroom house. It is a much nicer house and loaded with far more of those goodies than the $1.2 million one. In fact, this house is less expensive while being larger and better in all the aspects of what you want. And it is offered at only $900,000!
The choice here is a no-brainer.
Platinum currently trades around the $900 per ounce level. Gold is trading around $1,200 per ounce. And platinum is a far more precious metal in every aspect than gold! Google that fact for the proof as you will find no argument for gold being more precious than platinum -- because that argument is false.
Take away all the press, all the media hype, and all the sales promotions on television and the Net that push the "own gold" mantra and you are left wondering as I have been for years now. Wondering how in the world so many millions of investors in precious metals can be so dumb as to buy gold over platinum.
Perhaps media hype is to blame for this huge disparity between the price of gold and the price of platinum. After all, the cocky gold salesmen making their pitch have returned. They are like zombies who just don't die, in that once the yellow metal reawakens they are back in your face with their "buy gold!" banter.
The cynic in me thinks that the ability of these folks to sustain very bad, elongated bear markets in gold is because they are salesmen, not investors in gold. In fact, they may be far worse. They may be mere middlemen who take a fee for pitching in the media how necessary it is for all of us to own gold coins.
However, if they are truly experts in the precious metals market then they would be pushing platinum now, as it currently offers a huge edge over gold in price and value for both the trader and investor.
Stupid sure is as stupid does. And right now stupid is buying the smaller, with less trimmings house with the much higher cost, no less.