No. of Recommendations: 6
At least new to me, the gold-platinum ratio. Seems to be a good predictor of stock market direction. Currently bullish.

Post hoc sed non propter hoc?

Why should that ratio have any value in predicting anything? Some precious metal types study the gold to silver ratio, that might have had some value in predicting things long ago, but no longer has. The "proper" ratio of gold to silver would seem to be in the range of 15:1 to 10:1 (ratio of the amount actually mined) but now is around 90:1. So some think that silver will go way up in price to get the ratio down to its historical value. For some reason, few thing the gold price will go down to reduce the ratio.

In my view, precious metal prices are so extremely manipulated that the prices have almost no meaning at all, and derivative information, such as ratios of manipulated prices, has even less value. Now it is interesting to me to decide if platinum is a precious metal in an economic sense. True it costs a lot per ounce, but its use is largely chemical and industrial, not as an investment vehicle. Even silver is questionable in that regard, though I lean to thinking it a precious metal.
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