Platinum allocation remains even more attractive

13 May 2022 close: Following a long period of weakness, Platinum is again looking more favourable and in tune with our longer term forecast. All time intervals, Daily, Weekly, Monthly and Quarterly look to have turned down with more pressure to be expected. Hence no change to our 1/3rd Pt allocation in total precious metals.

01 April 2022 close: Our Platinum allocation had a bit of the bumpy ride the past few weeks. Whilst Pt rose sharply in the early days of the Russian invasion, the subsequent metals pullback against caused Platinum to lose all of its gains again and more to settle above the 1.90 level versus gold. In the process all time intervals have begun to look high risk and that is where we are today. This is a longer term play which should find Platinum on much higher ground in coming months and quarters. The Platinum solution has regain trust from investors seeking more protection away from other high risk assets. The technical picture actually looks more solid than it did 1 1/2 years ago as we first started to re-allocate. Our 1:1 equilibrium is very much on the horizon. A patient wait.

25 February 2022 close: No change since last month with Gold/Platinum at 1.79. Risk weight across time intervals is in fairly neutral risk territory with a tendence of developing bearish risk to price divergence. Risk weight appears to going up whilst price remain fairly static. This is made very visual on the Monthly risk chart. A strong rally of risk against a regular 50% correction. Platinum may not be quite ready yet to continue the uptrend that started in 2020 but any change of trend can also be imminent, hence no reluctance to hold our full Platinum allocation within the precious metals portfolio.


Gold/Platinum Ratio Charts


GOLD/PLATINUM Ratio risk position
relative to Quarterly, Monthly, Weekly and Daily risk weight intervals

(Previous update in brackets)

Gold Platinum ratio Monthly Weekly Daily
1.9290 (1.9520)
Trend ↓ (↑) ↓ (↑) ↓ (↓)
% Risk
Weight
84 (94) 64 (90) 35 (90)
Total PM
Portfolio allocation 45% (45%)
breakdown:
Au:12% Ag:14% Pt:14%


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Posted in A - All Financial Blogs | 2021 Forecast, Gold to Platinum Ratio.

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