After my atrocious call on Impala Platinum as a screaming buy at R180, I’ve tended to stay away from commodity stocks.
Having said that, there’s an interesting thing that I have been watching with half an eye – the gold price is rapidly sneaking up on the platinum price – something that would have sounded completely unrealistic a few months back when platinum was at nearly 2000 dollars an ounce.
This morning, gold was within 31 dollars of platinum. Both metals have moved up a bit on European trade.
Currently gold is trading at 756.6 dollars (up 12 from yesterday) and platinum is trading at 806 (up 37).
The Gold Exchange Traded Fund (ETF) – GLD – is showing some real strength since September – while most other asset classes are taking stick, the Gold ETF has added value and I don’t think its finished yet either.
The ETF has climbed from around R60 to around R78 which is a pretty healthy return in these tough times. The Gold price itself seems to have established a base at around US$720 and is gaining momentum, the more apparent the trouble in the global economy becomes and the stronger the dollar goes – the better the return on the ETF becomes.
Can’t say whether it will continue to offer good returns for investors but I have added a few to my portfolio in recent months as a form of capital protection.
Subscribe to:
Post Comments (Atom)
Posts
1 comment:
Well... Gold spiked sharply (About 50 dollars an ounce) in late US trade.
They are now within 21 dollars of one another.
Mate of mine passed the comment that all the women who have been buying platinum jewellery over cars - "who is going to tell them that their precious ornaments are made from the same stuff that goes inside car exhausts!"
Post a Comment