Gold vs. Platinum Index is breaking lower

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Gold ( GLD , quote ) vs. Platinum ( PLTM , quote ) Index is breaking lower (gold div by plat) which is not only a function of gold's demise as a hedge for platinum global policy mistakes/inflation/anti-dollar but also as a sign of growth as platinum has industrial uses that are aligned with recovery.

Breaking out of 6 month (low) range its worth playing on short term technical measures and relative to long term averages of gold to platinum.

sg2014010338032


Longer term the average of gold to platinum was around .55, especially in the period of higher global growth and no fed action in mid-2000's.

Look at below for the long term average and where this spread could normalize to.

sg2014010338272



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , International , Stocks

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