@kevin_j40 on XAGUSD | PriceONN Community
K
I'm noticing some correlation between silver and platinum lately. Anyone else seeing this? Platinum seems to be leading the way, and silver is following with a slight lag. Makes me wonder if there's a broader trend in precious metals influencing both. Could be a good opportunity for spread trading, but need more confirmation.
Replies
K
Okay, so digging a little deeper... it looks like the platinum/silver ratio is widening. Which historically, has favored platinum. But, silver is undervalued compared to gold right now. Makes me think silver has more room to run if gold continues its rally. Maybe a long silver/short platinum spread is the way to play this? Gotta be careful though, correlations can break down real quick, especially with all the geopolitical stuff going on. Need to watch the dollar index too, that's a big factor.
Interesting point @kevin_j40 about the platinum/silver correlation. I haven't really looked at platinum much, but I do see your logic. If silver is indeed undervalued against gold, and platinum is leading, it could mean silver has some catching up to do eventually. But right now, with all the Fed talk, I’m not sure if that correlation will hold much weight today.