Sell gold now

The spread between the prices of gold and platinum has been narrowing in recent weeks. Today, the two have switched places and back several times at about the $1,240 level. To put this in the simplest terms possible, there appears to be a pattern in gold and platinum prices, showing that when a price inversion such as this occurs, it will inevitably unravel after a few months, but only after the price of both metals has fallen.

Fundamental indicators are also going against gold right now. Other commodities prices are tumbling, and only the wild volatility in stocks, as well as a certain amount of panic over Ebola, are keeping metals prices as high as they are. If the inversion persists, and even if it doesn't, gold will likely fall well past the $1,200 level once stock prices settle into a comfortable range – even if that range is 10% lower than it once was.

Platinum and gold are comparatively rare in the earth's crust, but platinum requires far more processing, hence these inversions are generally unsupportable in the long run.

Julian Close

Julian Close

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.

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