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This Is a Better Deal than Gold

By Jeff Clark
Thursday, November 1, 2012

In five days, my beautiful bride and I will celebrate our 20th wedding anniversary.
She believes a brand-new, 2013 Range Rover is the appropriate gift to mark such an occasion. But I've been told platinum is the traditional 20th anniversary gift.
That's a good thing, because Range Rovers aren't on sale. Platinum is...
Platinum spiked higher along with all the other precious metals a couple months ago in anticipation of another round of quantitative easing. But since peaking above $1,700 per ounce one month ago, the price of the shiny white metal has nose-dived by almost $200. Now it's trading near $1,500.
It's a bargain at this price – especially if you compare it to gold.
You see... platinum normally trades at a premium to gold. Sometimes it's just a small 10% or 20% premium. Other times – like in early 2000 – platinum could be twice the price of gold... or more.
Today, platinum is trading at a discount to gold. To put it another way... platinum is cheaper now relative to gold than it has been at any time during my 20-year marriage.
Just look at this chart...
 Platinum Vs. Gold Over Past 20 Years
This really is an unusual situation. Platinum trades at only 90% the price of gold. And as you can see from the chart, this really hasn't happened before... at least not in the past 20 years.
Everyone is talking about how precious metals like gold and silver have to move higher over time because global central banks are rushing to print money. But nobody, it seems, is paying any attention to platinum.
So as I hunt for something platinum to give to my wife on our 20th wedding anniversary, I'll be buying a little extra as an investment.
You might consider doing the same.
Best regards and good trading, 
Jeff Clark

Further Reading:

"Platinum is as cheap as it has been in over two decades... and it's a great time to buy," Jeff wrote earlier this year. The metal rose 20% over the next six weeks. Now, it's hovering back around early year prices… offering another great trading opportunity. Review his argument for owning the rare metal here.
After a short-term pause in the market, Jeff expects a year-end rally in stocks. Earlier this week, he showed investors one strong sector that can provide an early clue as to when the rally will unfold. Learn more here: This Sector Will Lead a Year-End Rally.

In The Daily Crux
Market Notes
Housing recovery continues... big home construction fund ITB breaks out to a fresh four-year high.
Gold miners with growing production are outperforming... Yamana Gold and Agnico-Eagle break out to new 52-week highs.
Ford hits a five-month high after latest results show strong U.S. car and truck sales.
PC-makers Hewlett-Packard and Dell touch fresh multiyear lows.
Market Watch
Symbol Price
S&P 500 1412.16 +0.0% +12.7%
Oil (USO) 31.78 0.0% -11.1%
Gold (GLD) 166.83 +0.5% -0.3%
Silver (SLV) 31.27 +0.6% -6.5%
U.S. Dollar 79.94 -0.1% +6.5%
Euro 1.30 +0.3% -6.2%
Volatility (^VIX) 18.60 +4.4% -37.9%
Gold Stocks (^HUI) 506.33 +3.1% -10.6%
10-Year Yield 1.69 -3.4% -22.1%

World ETFs
Symbol Price
USA (SPY) 141.35 +0.0% +15.0%
Singapore (EWS) 13.34 -0.3% +13.6%
S. Africa (EZA) 65.63 +0.5% +7.1%
China (FXI) 36.79 -0.4% +4.8%
S. Korea (EWY) 57.58 +0.4% +4.7%
Canada (EWC) 28.49 +1.1% +3.2%
Taiwan (EWT) 12.61 +0.0% +1.6%
Japan (EWJ) 9.06 -0.7% -1.5%
Lat.America (ILF) 42.32 -0.9% -4.0%
Israel (ISL) 12.95 -1.4% -5.8%
India (IFN) 22.75 -0.4% -8.6%
Russia (TRF) 14.65 -0.8% -11.2%

Sector ETFs
Symbol Price
Construction (PKB) 16.49 +2.3% +40.3%
Media (PBS) 16.30 -0.2% +23.4%
Health Care (IYH) 83.47 -0.9% +22.9%
Consumer Svcs (IYC) 85.36 +0.1% +22.4%
Financials (IYF) 59.03 +0.4% +19.8%
Retail (PMR) 25.37 +1.2% +19.0%
Telecom (IYZ) 24.42 -0.1% +18.7%
Insurance (PIC) 17.41 +0.6% +16.3%
Real Estate (IYR) 64.00 +1.1% +15.9%
Water (PHO) 19.54 +1.6% +15.2%
Industrials (IYJ) 70.47 +0.6% +13.8%
Big Tech (QQQQ) 64.95 -0.6% +13.3%
Defense (PPA) 20.09 +0.6% +12.6%
Biotech (PBE) 22.27 -1.1% +9.6%
Utilities (XLU) 36.90 +0.9% +9.2%
Software (PSJ) 27.05 +0.5% +8.7%
Transportation (IYT) 90.00 +0.8% +4.0%
Basic Mat (IYM) 67.11 -0.2% +1.7%
Semis (PSI) 13.53 +0.7% -6.5%
Nanotech (PXN) 5.83 +0.7% -7.7%
Alt. Energy (PBW) 3.93 +0.8% -32.1%

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