I think so too. But it's smart to diversify, and it's hard to imagine gold rising much beyond perhaps $2,000 without retesting the $1,600 level. Platinum, on the other hand, is *not* overbought right now. Far from it.
Gold will soon far outshine platinum: economist
August 16, 2011, 12:36 PM
Gold prices have gathered momentum and at least one economist believes they’ll overtake platinum again soon.
Last week, gold prices briefly exceeded the price of platinum for the first time since December 2008, according to Capital Economics. “This rare occurrence will be repeated and the spread will widen to record levels in the next two years, assuming no major disruption at South African platinum mines,” said Ross Strachan, commodities economist at Capital Economics, in a note Tuesday.
He expects gold prices GC1Z to rise to $2,500 by 2013 from current levels of around $1,770. “We think that the safe haven attributes of gold will stay to the fore.”
But “our gloomy prognosis for the global economy suggests that platinum prices will drop back,” Strachan said, predicting that platinum prices PL1V will drop from around $1,810 to around $1,500 in 2012, and remain at or around that level in 2013.
That potential price advantage of $1,000 an ounce for gold would by far be the highest differential ever. The previous record, according to Capital Economics: $126 an ounce.
– Myra Saefong
http://blogs.marketwatch.com/thetell/2011/08/16/gold-will-soon-far-outshine-platinum-economist/
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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