Precious metals moved higher once again today, however gold moved more visibly higher and silver is taking a break. The opposite was the case yesterday, so on average both metals have been moving higher.

Gold is once again above its 300-day moving average, which is good news for those betting on higher gold prices (according to our suggestions). The situation on other charts / indicators is generally unchanged since yesterday and the implications remain bullish.

Yesterday, we wrote the following:

Platinum moved sharply higher once again today and if moves another $20 higher without a rally in gold it will once again become more expensive than the yellow metal. This is something that we view as very likely in the coming weeks and months and we suggest moving some of your gold assets to platinum if you haven't already done so (according to our gold and silver portfolio).

We didn't have to wait for much longer - platinum moved over $30 higher today and gold is up "only" $13 at the moment of writing these words. Platinum is currently $9 more expensive than gold is and we expect the gap to widen in platinum's favor in the following months. It's not too late to purchase platinum in our view. The trigger for this rally was on the supply side of the market - with closing mines, the supply is likely to decline which should make price move higher - and it does. You can read more about the current situation in South Africa here (this is where 80% of world's known platinum's reserves is located). The platinum price was, and still is, very low relative to gold and was very likely to outperform gold - all it needed was a spark that would ignite the rally, and it seems that cutting the output of Anglo American Platinum (world's top platinum producer) by 400,000 ounces will to the trick - along with help of the recent idea about the trillion-dollar platinum coin - while it will in all likelihood never happen, it did a good job at drawing investors attention to this particular metal.

Here are some parts of our website that you may want to visit if you're interested in investing in platinum:

• Platinum as a precious metal
• Importance of physical physical gold, silver, platinum ownership
• "What are your thoughts on platinum as insurance?"
• Precious Metals Portfolio (includes platinum)
• Our interview with Nick Barisheff (with information on platinum's monetary future)
• Thoughts on funding one's retirement with silver (with comments on platinum)
• Report on Precious Metals in Japan with emphasis on Platinum and Palladium

Most of all, if you are looking for a platinum ETF / ETN, be sure to check our gold & silver ETF ranking. Its name can be misleading (and we're thinking about dividing it into a few separate rankings) because it includes more than gold and silver ETFs / ETNs - you will also find information about mining stock funds and platinum/palladium funds. In order to see the latter go to the  page, scroll the page to the bottom and access the full screen mode. Then, on the top of the page select "investor ratings" (or "trader ratings" if you want to trade platinum instead of investing in the long run). Then in the header of the table select "benchmark". You may have to click it twice to activate the sorting. Scroll down until you see "PGM" (Platinum Group Metals). You will then be able to compare how many "stars" did a given fund receive based on numerous fundamental and quantitative factors.

As far as the SP Indicators are concerned, yesterday we did not see a buy signal from the SP Short Term Gold Stock Bottom Indicator  nor from any other indicator, so we are not suggesting doubling the long position in the precious metals market just yet. Just as we indicated on Friday, at this time half of the long position is suggested for gold and silver.

Naturally, we suggest remaining in the precious metals market with your long-term investments.

As always, we'll keep you updated should our views on the market change. We will continue to send out Market Alerts on a daily basis (except when Premium Updates are posted) at least until the end of January, 2013 and we will send additional Market Alerts whenever appropriate.

Thank you.

Sincerely,
Przemyslaw Radomski, CFA