Metals Minute 35: Return of Gold

Hopefully, you had an opportunity to tune in last week and act on our recommendations to add physical metal as we begin what has historically been a strong season for physical gold and silver.

For the last week, gold is up 3% to $1,815, silver is up 2% to $26.53, platinum is up 3% to $1,108, and palladium is up another 5% to $2,876.

From a year ago today, gold is up 1%, silver is up 45%, platinum is up 32%, and palladium is up 49%.

While some look at gold’s 1-year performance (1%) as a reason to avoid gold, the astute investor sees it as a reason to purchase gold. To get to average returns for gold requires an above average return going forward, which began last week and looks likely to continue.

To correct a mistake made on last week’s episode, I mentioned that only a “few hundred pounds” of platinum are mined annually. I meant to say “few hundred tons.” Sorry about that. But the basic premise is still valid - that platinum is rarer than gold or silver and is currently underpriced based on its historical relation to the gold price.