Bolling: The Gold and Platinum Connection

It never looked back until last month that is. On Dec. 17, platinum went under gold for the first time since 1997. I was writing and speaking about this earlier in the week and feel that this is a trade with "legs."

The main argument in favor of the trade is that gold has held the distinction of being the safe haven asset during this very tumultuous economic time, while platinum has been on the receiving end of the de-leveraging of assets in hedge funds.

Two weeks ago, I highlighted the trade on "Street Meat," a new segment on my show "Happy Hour" on the Fox Business Network. By the way, the spread between the metals has widened, but there is still room to go. It now sits at $145 (platinum over gold) but spent most of the last decade between $200 and $500. As a point of reference of how strong this spread has been, the 50-week moving average is a whopping $690 and the 200-week moving average is still $583!

Great trading. And as always, trade with your head, not over it.