If you're a gold investor, you probably have a bad taste in
your mouth, and I don't blame you.
Gold stocks have gone nowhere for what seems like years.
itself hasn't moved much in the past year.
So you're probably sitting on the sidelines, waiting for
something (ANYTHING) to happen to buy more, or maybe even to cut
But there's always something you can do.
I'm not advocating trading. I think it's a great way to lose
money quickly if you don't know what you're doing.
But there's one trade that I actually like in the precious
metals world. It's not a super quick-moving trade that you need
to watch every day, or even every week. But it can give you
10-30% gains pretty easily when it gets set up.
Right now, we're in the middle of that set up.
I'm talking about the
I've talked about it before. And the last time I pulled the
trigger on this trade for myself I made 12% in a few months - not
terrible while we wait around for gold stocks to catch fire.
The premise is simple: platinum is almost always more
expensive than gold (for a variety of reasons). But right now,
it's cheaper than gold.
The trade? Buy platinum (I prefer the
ETFS Platinum ETF (
and hold it until the trend reverses back to normal.
Since we know gold and platinum are both in long-term bull
markets, there's little risk of both metals falling very much
during the course of this multi-month trade.
I like this trade because it's simple, it has almost no chance
of losing much (if any) of your money, you don't need to watch it
like a hawk, AND it distracts you from how terribly boring the
gold markets have been.
Full disclosure: I currently own PPLT and plan to hold it at
least until gold is less expensive than platinum for a full