PLAT/GOLD ratio: why my stockpick number 4 will start to fly !!
Platinum is usually 1 to 2 times more expensiv than Gold historically (between 1.17 and 2.37 times from 1998 until 2008).
After the Great Financial Crisis things went out of wack ! The ratio fell inside a bullish descending wedge until it touched its low point around 0.39 !
At the peak of the Corona Crisis you could buy 2.5 ounces of Platinum with 1 ounce of Gold ! This undervaluation is of factor 3 compared with its average.
This means Platinum could very well outperform Gold by 3 times in the future.
Intresting is that price formed a double bottom with its recent March low and that a bullish divergeance formed between the March 2020 and March 2024 low.
Whereas the March 2020 low was a FALSE breakout of the wedge. The March 2024 is a REAL backtest of the apex of the bullish wedge.
The future price movement of the ratio, and especially the price movement of the PLG (Platinum Group Metals - stock pick number 4/10) should be dramatic !!
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