Watch Out - Platinum Price Is Looking Sexy

February 28, 2019

London (Feb 28)  Platinum has been a dog for years. The rarest precious metal slipped to a discount under gold a half-decade ago, and it has not looked back. The metal that once went by the nickname as "rich man's gold" traded as low as $500 below the price of the yellow metal over recent weeks.

American Express and many other credit card companies continue to value their platinum card higher than their gold cards, but the fact is that platinum has been anything but a cherished precious metal. In 2017, the price slipped to a discount to palladium for the first time since 2001. In 2019, platinum traded to the lowest level against palladium in modern history at over a $650 discount.

Despite its higher resistance to heat, higher density, and value as an investment metal and uses in jewelry, the price action in the platinum market had sent the metal to the dog pound in the precious metals sector. In 2018, platinum traded to its lowest price since 2003. In 2019, it continued to flirt with levels below $800 per ounce. However, since its last trip below that level, platinum has displayed signs of life. A massive recovery that could shock the precious metals sector is long overdue when it comes to the price of platinum, and there are some signs that platinum could be ready to make a move.

A new high for 2019

It was not long ago that platinum last traded below the $800 per ounce level on the nearby April NYMEX futures contract. On February 14, the price traded to a low at $780.90 per ounce which was not far from the lowest level since 2003 at $755.70 in mid-August of 2018.


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