Why I like Platinum
8 June 2020
Check out the spread charts below (Pt versus Pd and Pt versus Au).
I cannot figure out why platinum is so out of favour versus palladium and gold. But what is even more interesting is that luxury watches are still priced with the platinum version being the most expensive versus their gold counterparts (yellow, pink and white). For now I am definitely curiously perplexed.
(a) An options structure to profit from a move up in the price of Platinum. Two strategies: a play on the outright price and a play on the spread versus Gold.
(b) One of my favourite signals for going long oil. Something of an anomaly hence we should be cautious about the long-term equilibrium of oil versus other markets.