Platinum\Gold ratio at 14 year extreme

20 jul 2020

Platinum relative to gold is now exactly FIVE TIMES CHEAPER than it was at the peak of the commodities bubble back in May - June 2008. It is still in a downtrend, and this study has ZERO validity for short-term trading: extremes can ALWAYS get more extreme, OR they can get stuck at the same "insane" level for an unpredictable long time, so I would advice to pick up some long platinum exposure here due to historic undervaluation, but only as a long-term play. I'm going to look to take a small long position without a stop, one I can just buy-and-forget-about for how small it is, and maybe slowly increase over time. I've looked at the chart of platinum for short-term trading signals, but have been unable to find anything compelling to me, so the only strategy I can personally think of is to accumulate very small positions on the dips, until the technical picture gets more clear, and hopefully a new uptrend starts in this VERY cyclical and ILLIQUID metal. If you're able to better read the chart of Platinum and see some strong evidence for going long OR short, please let me know.