The precious metal that got left behind

August 13, 2020

New York (Aug 13)  While gold has hit all-time highs in the last month, platinum is 50% below its record selling price, notes Will Rhind, CEO of GraniteShares.

Rhind spoke with Kitco on Monday.

"Platinum is less than half its all-time high. Now contrast that with silver. Gold is at all-time highs. Palladium is hovering around all-time highs," said Rhind. "[Platinum] is a metal that should do well in a hard asset rally."

Silver made strong moves, hitting a recent seven-year high when it closed just below $30 ounce.

October platinum futures for September are $938.9 an ounce as of 1 p.m. ET today. Historically, spot platinum broke through $2,000 ounce in the spring of 2011.

Rhind said slashed U.S. treasury rates are pushing investors into precious metals. The flight to gold and other precious metals is really just a "...barometer for the fixed income market."

"The 10-year U.S. Treasury is showing real yields on a negative basis. You're not getting anything for your money. This has been a huge thing--this lack of income in this current environment. People are looking for alternatives to bonds, and gold is one of the places they are going."

Rhind also notes that that a large portion of the market is still absent from precious metals. Despite this year’s dramatic gold price run-up, precious metals are not on most investor's radar. Referring to the generalist investors as “tourists,” Rhind said gold is still looking for love from the broader market.

“The tourists are not here. They're not in this market yet, [but] when we start to see the tourist rushing into gold, you'll know it,” said Rhind.


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