Platinum Silver ratio favors Pt longer term
13 May 2022 close: At the 13 May 2022 Friday close Platinum has shown a solid performance versus silver.
The poicture looks a little more in favor of Silver short term but all medium and long term time intervals are now pointing up for Platinum vs Silver. Arguably a reason to have an overweight Platinum position within the Metals space but for now we are happy to keep our Platinum allocation at minimum 1/3rd of total.
01 April 2022 close: Platinum is developing a very similar technical picture against Silver as it has against Gold, looking to get low risk and ready for the next advance. As long as investors see no appetite for Platinum, and markets are clearly not very encouraging, the opportunity to enter a Platinum allocation is desirable and likely to offer both price gain oportunity as well as risk diversification. As clearly visible in the risk charts below, risk weight is low or has deepened more rapidly without massive price change. 10% moves in these markets are common and should not worry Platinum long investors at these downgraded price levels. Our long term equilibrium objective of nearer 65-70 is a 'risk on' investment event. The Platinum ratio technicals versus both Gold and Silver tell us that Platinum must be held in roughly equal allocation within the PM space.
25 February 2022 close: Platinum to Silver feels historically similar to Platinum vs Gold. That is, risk weight is neutral with most intervals in downtrends whilst prices remain static. That is usually a signal for risk to start moving higher for Platinum based on a change of trend in favor of Platinum. Even though Platinum has yet to return to its historic levels vis a vis gold and silver the picture still looks more in favor of that happening, not the reverse. No Change whilst the situation in Western Europe looks grim and anything can happen. Metals remain our primary insurance against monetary implosion.
Platinum/Silver Ratio Charts
PLATINUM/SILVER Ratio risk position
relative to Quarterly, Monthly, Weekly and Daily risk weight intervals
(Previous update in brackets)
|Gold Platinum ratio||Monthly||Weekly||Daily|
|Trend||↑ (↓)||↑ (↑)||↓ (↑)|
|42 (14)||60 (14)||78 (37)|
Portfolio allocation 40% (40%)