This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Leaving Gold for Platinum

NEW YORK ( TheStreet) -- When it comes to playing precious metals, no shiny material gets more press than gold. This yellow metal has consistently been looked to in times of turmoil as the ultimate play on market uncertainty.

As the global economy started its journey down the road to recovery last year, increasing skepticism over the rally's longevity, plus inflation fears, sent investors pouring into the gold market, boosting prices to record-breaking levels.

Because of its chemical make-up, gold is too soft to serve any industrial use. Given this quality, the metal's price is not affected by the performance of the market, thereby making it an ideal way to protect against market downturns and uncertainty.

In order to gain access to this "barbarous relic," investors have long had the option of buying up physical gold and storing it in a vault. Today, however, investors have been increasingly turning to the wildly popular physically backed gold ETFs, gold miner ETFs and gold mutual funds currently available.

Some of the more popular products available today include the iShares COMEX Gold Trust ETF (GLD), the Market Vectors Gold Miners ETF (GDX) and the Tocqueville Gold Fund (TGLDX).

Unfortunately for gold bugs holding these funds, as the global market has continued higher, a lot of the fear that served as fuel for the metal's rally has fallen by the wayside as the U.S. dollar has strengthened. In response, gold prices have leveled off. At the height of its popularity, the metal was breaking the $1,200 per ounce level. Recently, though, the price of an ounce of gold hovered closer to $1,100.

Gold's stumble can be viewed as a sign that the average investor's appetite for risk is returning. Rather than seeking out the safety and security that gold provides, investors have turned their attention to riskier asset classes. This flight to risk includes taking on more industry dependent precious metals as a part of their portfolio. One of the more popular options has been platinum.

Typically, platinum prices will lag gold in times of trouble, while outperforming in times of market strength. Today, it appears we are in the midst of the latter scenario.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
PPLT $81.30 0.17%
GLD $102.47 -0.46%
GDX $13.75 -0.65%
NILSY $14.37 1.19%
PLTM $5.12 -0.87%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs