The ever increasing price of gold is making platinum a more attractive alternative to some investors.

The gold price has risen 20 percent alone this year yet platinum fallen 3 percent this year and 5 percent this month.

According to Peter Major a Cadiz mining analyst the price of platinum is undervalued compared to the gold price.

I-Net Bridge data shows that the ratio of the platinum price to the gold price is at 1.06 to 1, indicating it is around 6% higher. When you consider the scarcity of platinum as compared to gold and its historicasl price it is likely that platinum is poised for a massive upswing.

Such a low ratio is an anomaly as the supply fundamentals of platinum differ from gold, according to Major.

“Firstly, it is easier to get one’s hands on gold; it is easier to refine it and to melt it down. I think that’s why, when people panic and buy precious metals, they buy gold.”

“Platinum is generally not so easy to get a hold of as gold although one can buy platinum from goldmoney.com. in small amounts and build up over time.” according to one analyst.

Platinum does look set to be a neck and neck asset to replace gold or even just help to diversify assets into more than one precious metal.

This entry was posted on Sunday, August 28th, 2011 at 12:16 pm.