Gold prices have now exceeded platinum prices for several months.
I'm interested to know if this is most likely related to continued
investor demand for gold bullion, industrial demand, or some other
reason. Is platinum likely to return to the top spot soon? If so,
will platinum increase in price or will gold decrease in price?
I’m gonna guess on this one. Gold prices mostly respond to currency
values, the price of oil and similar indicators of economic health or
ills. Influences on current gold market will be investor worries,
driving some to “safe” commodities like gold, as well as the value of
the dollar versus the Euro and other world currencies. I’d guess the
current drop in gold from it’s highs a couple months ago is mostly
reflective of the relative changes in value of the dollar versus the
Euro, and European worries have raised the value of the dollar, so
it takes fewer of them to buy the same ounce of gold. The gold price
hasn’t change, rather the value of the money buying it has increased.
Platinum, on the other hand, is less of a financial instrument.
Sure, it’s a precious metal and commodity, but to much less a degree.
Much more of it’s price is dictated by actual industrial demand, and
in a world wide recession, there’s less of that demand, or at least,
less certainty of future demand, so prices aren’t driven up, but
instead, down on fears there will be less demand for the stuff.
That’s my guess.