Global Investors Turn Platinum Over Gold

businessinsider ^ | Jan. 25, 2010 | Vince Veneziani

[Jet Jaguar]

Gold continues to be a wildly popular global obsession, but the winds may be changing a little.

Why?

Platinum is undervalued, out of the public eye (compared to gold), and production is set to expand as auto manufacturers begin producing more vehicles.

Investors are even beginning to go long platinum while simultaneously shorting gold:

Bloomberg: Even after a record 57 percent rally last year, platinum is cheap relative to gold, signaling more gains as demand grows from carmakers and exchange-traded funds.

“We are long platinum and short gold,” said Jonathan Barratt, the Sydney-based managing director with Commodity Broking Services Pty, who predicted platinum’s rally in September. “Gold remains under pressure. As inflation moves lower and the dollar goes higher, gold isn’t as solid.”

[Overtaxed Patriot]

Besides catalytic converters, what other things is Platinum used for? Electronics?

I've heard of platinum blondes.

[Overtaxed Patriot]

Fine, go long platinum if you buy this whole recovery narrative, but short gold? Look, if the SHTF or we start seeing sovereign debt defaults (Greece, for starters), and the EU fracturing, people are going to pile into what metal?

Any metal that produces ammo.

[bert]

.....Platinum used for?....

Jewelry