PLATINUM/SILVER Ratio Price Risk Trend
(Previous update in brackets)
|Gold Platinum ratio||Monthly||Weekly||Daily|
|Trend||↓ (↓)||↓ (↑)||↓ (↑)|
|52 (56)||44 (53)||4 (34)|
Portfolio allocation 40% (40%)
Platinum/Silver Ratio Charts
19 November close The reversal in the Platinum/Silver cross rate wasn't as fierce because Silver also felt more pressure at the end of last week with the Pt/Ag falling just over 2% against Silver compared with the previous week ending Nov 12. As Daily risk weight has also landed in very low risk territory, we would expect Platinum to improve somewhat. No change to equal weight between these two metals in the portfolio and our long term objective of 73 stands.
12 November close The Platinum to Silver price ratio was unchanged at 42.90. Daily risk is down but at this 30+ percent risk level not a major threat to our prediction of eventually reaching that long term average of 73 again. Weekly risk weight has fallen more sharply from a percentage high risk level indicating Silver may soon be running out of steam against Platinum. Monthly risk weight is down but coulds easily resume back into the major uptrend that started in Marc 2020. That primary trend should only end with a bearish Risk weight to price divergence in the Monthly time interval at least. Quarterly too is coming from a bullish divergence position now pausing in favor of Silver. Our preferred portfolio risk perception is to maintain the present insurance distribution and to not further play the Platinum Silver ratio which we only adjusted 2 weeks ago to an equal hold between Silver and Platinum.
5 November close The Platinum versus Silver ratio still hovers around that historic low range as seen on the quarterly Platinum Silver chart below. With the 50 year average at 73 Platinum should have the benfit of any doubt and this Platinum/Silver ratio confirms that Platinum should be a strong allocation with the physical precious metals portfolio. Yet, Silver may explode and lead the rest at a slowe pace. Either way, the portfolio should benefit from the balanced allocation protection. The technical picture does not look particularly weak for Silver and strong for Platinum either and could turn in either direction short term. Hold.
Oct 31 close / 1 Nov update Platinum versus Silver closed weaker in October at 42.66, but rallied strongly on Monday Nov 1 towards 44.30. We have waited to see how the new month would begin. We have rebalanced our precious metals allocation ever so slightly where Silver is now equal to Platinum. The technical print at Friday's close 29 October was somewhat inconclusive although short term indicators with a low risk trend upturn on Daily are in favor of a Platinum rally versus Silver. This actually happened today Nov 1 with some speed where Platinum rallied 4% without much change in Gold or Silver. As all metals will eventually find the same direction on perceived fundamentals we still forecast for Platinum to show more strength against Silver, eventually reaching that 50 years average of around 73 from current 40's handle with many more ups and downs to come.