Platinum vs. Palladium - is platinum looking undervalued
- •I got into a Gold IRA a few years back as a more secure hedge against inflation, post-retirement from the Navy.
- •Palladium’s run over the last few years has been phenomenal, no doubt about it.
- •We all saw the charts.
I've been watching the platinum and palladium markets pretty closely lately, and I'm starting to wonder if platinum isn't looking incredibly undervalued right now, especially when you compare it to palladium. My portfolio isn't huge, sitting around the $2.5M mark, but I've always had a significant allocation to precious metals, particularly gold and a bit of silver. I got into a Gold IRA a few years back as a more secure hedge against inflation, post-retirement from the Navy. Being an Admiral for 30 years means I prefer a disciplined, long-term approach to my investments, not chasing every shiny new thing, but I also know when to spot a potential opportunity.
Palladium’s run over the last few years has been phenomenal, no doubt about it. We all saw the charts. But the price discrepancy between it and platinum has become staggering. They both have significant industrial applications, especially in catalytic converters, though platinum has a broader industrial base and, of course, the jewelry market. With the auto industry potentially shifting gears, perhaps platinum regaining some favor over palladium in certain applications, and its historical price averages, it just feels like it's due for a correction upwards relative to palladium. Is anyone else seeing this, or am I just looking at it through rose-tinted glasses?
I've been considering rebalancing some of my existing precious metals, perhaps even looking at adding some physical platinum to my holdings, outside of my Gold IRA since that's primarily gold and some silver, just to take advantage of what feels like a temporary market inefficiency. I'm based here in Virginia Beach, and I've been talking to my financial planner about it, but I'm curious to hear what others in this community, especially those with some skin in the game in precious metals beyond just gold, are thinking. Are there any factors I might be overlooking that would explain platinum's current lower price, or are we truly looking at an undervalued asset here?