Gold Is NOT the Best Bet in Precious Metals

Bronze... Silver... Gold...

You already know the next metal in the sequence. Just about everyone does.

It's platinum – the king of precious metals.

Sure, American Express has the Gold Card. But you know what card is above it – the Platinum Card.

Platinum is universally known for being above gold... It's the ultimate award level. It's how you know you're getting the best of the best.

But it's more than a marketing shtick. Today, it's an investment opportunity in the making...

For most of history, platinum has been more valuable than gold.

To share one example... in March 2008, platinum traded up to more than $2,200 per ounce. At the same time, gold was trading around $1,000 per ounce. Platinum was more than twice as valuable as gold.

That was an extreme moment. But over the last 25 years, platinum has still historically traded at a 34% premium over gold.

Today, gold is trading for around $1,500. So if platinum traded in line with its historic 34% premium over gold, then platinum would trade for more than $2,000 an ounce – like it did back in 2008.

Here's the amazing part... Platinum isn't trading at its historic average value, which would put it at $2,000 an ounce today. Instead, it sells for less than half that.

No kidding.

Gold gets the glory these days. It gets the headlines. And lately, it's deserved it.

The metal has had a meteoric boom in recent months, thanks in part to easy money policy. The Federal Reserve is back to cutting interest rates. And negative rates have become more common around the world.

Government bonds pay nothing. So investors aren't missing out on yield by holding gold or other precious metals. That's a major boost for gold... and in turn, platinum.

Gold is also the classic "fear hedge." And there's a lot of fear in the market today...

The bull market is nearing its end. The trade war between the U.S. and China lingers. The Iran conflict is simmering. And Europe is struggling with Brexit, as the deadline nears for the U.K. to leave the European Union.

All of that has been incredible for gold. And it's bullish for platinum, too. Here's the thing, though...

Gold is now loved.

We can tell by looking at the gold Commitment of Traders ("COT") report. It's a weekly report that tells us what futures traders are doing with their money.

When traders all pile up on one side of a trade, you know that the bet is getting oversaturated. And it indicates that a reversal is possible. Check it out...

Futures traders' bullish bets on gold have soared to all-time highs recently. That's a big shift in investor sentiment.

Now let me be clear... I'm not telling you to rush out and sell your gold holdings. There could be plenty of upside left in the gold trade. But the gold market has shifted from "hated" to "loved" in recent weeks.

Meanwhile, platinum is dirt-cheap. It would trade above $2,000 an ounce if it were to get back to its typical premium to gold.

The metal needs to more than double to hit that level... And that's why you should consider owning the king of precious metals right now.

Good investing,


Further Reading

Recently, Steve told DailyWealth readers about another opportunity outside of stocks... and the time to act is right now. Get the full story right here.

In recent months, another precious metal has played catch-up with gold. Bill Shaw expects the gold boom to continue, but sees outperformance ahead for another metal. Get the details here: This Asset Will Crush Gold in the Precious Metals Rally.

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Platinum is due for a major rally. And this will be a huge tailwind for one diversified-mining powerhouse...

Market Notes


Today's chart shows that not every brick-and-mortar retailer is succumbing to the "death of retail"...

If you look at the news today, you can still find headlines about online shopping crushing traditional brick-and-mortar stores. But regular readers know that some retailers are not only surviving... they're thriving. Specialty stores, and especially low-cost stores, are bucking the trend...

Ross Stores (ROST) is the largest off-price retail chain in the U.S., with more than 1,700 stores across the country. The company's size allows it to negotiate with manufacturers so it can provide the latest clothing styles and home accessories for big discounts. And while retailers like Macy's and Sears have been closing stores... Ross is actually expanding. It's adding new locations, perhaps most notably in the Midwest. And in fiscal 2018, it hit a record $15 billion in sales.

As you can see, ROST shares are in a clear uptrend. The stock returned more than 200% over the past five years, including dividends... and it recently hit a fresh all-time high. As Ross expands, its low prices and new styles will keep attracting customers...