In the midst of the ongoing artificial intelligence (AI) revolution and the excitement surrounding related stocks, the enduring appeal of hard commodities like gold, silver, and platinum continues to attract investors looking for a safe-haven in times of economic uncertainty and inflation.
The recent rally in gold futures and the outperformance of the SPDR Gold Shares ETF (GLD) have fueled optimism among investors. However, one expert is now urging investors to shift their focus to platinum, which he believes is undervalued compared to gold.
Larry McDonald of Bear Traps Report points out that platinum prices have lagged behind gold, resulting in an attractive price ratio between the two metals. He argues that platinum offers significant upside potential and is currently a better investment opportunity.
Johnson Matthey, a specialty chemicals and sustainable technologies firm, also sees promise in platinum, noting that the market is facing a significant supply shortfall. The demand for platinum remains strong, especially in industries such as green energy, where platinum plays a vital role in hydrogen-based fuel cells.
Investors looking to capitalize on the potential upside in platinum can consider the GraniteShares Platinum Trust (PLTM), a physically backed ETF that tracks the price of platinum. While PLTM may not offer the same liquidity as GLD, it presents an opportunity for investors seeking exposure to the precious metal.
As platinum gains traction as a valuable investment option, keeping an eye on its supply and demand dynamics will be crucial in determining its future performance. With platinum’s diverse applications across various industries and its current undervaluation compared to gold, there is optimism for continued growth in platinum prices.
