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Gold Breaks from Traditional Trading Versus Oil and USD, Looks Strong

If you are a believer in playing divergence from historical ratios even in this historically "crazy" market, have a look at Platinum. Similar to silver, platinum to gold ratios have come way down, and are now correcting to the upside along with gold. In the six months leading up the November lows gold dipped about 20%, while silver dropped 45%. If you feel that this is enough to tell you that silver is undervalued consider platinum which plummeted a whopping 60% in the same period. I know the knock on platinum is that it is not the same as gold in the "ultimate flight to safety" sense. Yes, the main consumers of platinum are the auto industry, yikes. But worldwide auto sales have increased the past two months. If you believe in historic ratios look for platinum to fight its way back the 1.5-2.5 times gold level. See PTM or PGM.

Now's a Great Time to Hedge Your Gold Bets

Hi All,

I am fairly new to investing and only have a small amount of money at work right now. Because of this I feel that I am fairly tolerant of risk. I have been playing UUP (long USD), DZZ (double short gold), and GDX for the past year with pretty good results. I am currently in GDX and recently bought some PTM (long platinum ETN). My reasoning behind this is the fact that Platinum has not been this cheap relative to Gold. For the most part Platinum seems to follow Gold at 1.5-2.5 times. However, in the second half of 2008 Platinum prices dropped three times as much as gold; the ratio is now close to 1:1. I understand that this is in part due to the declining auto industry, but I wonder if platinum is undervalued at this point. Now that Gold and Platinum have both been heading up for the past three months it seems like PTM is accelerating to the upside compared to GLD or GDX. Global auto sales have increased the past two months. Because of this I like PTM very much. Any thoughts or opinions would be greatly appreciated.