― STRATEGY NEWS ―

Gold & Platinum - Maintain Long - Term Overweight

We reiterate a long-term constructive view on Gold and Platinum.

Gold remains underpinned by central-bank buying, macro-hedge demand, and a maturing rates cycle. Platinum offers compelling relative value amid structural supply deficits and durable industrial uses (auto catalysts, chemicals, glass, and hydrogen technologies).

Gold : Central-Bank Bid + Macro Hedge

Persistent official-sector demand. Central banks continue to diversify reserves away from the dollar, providing a steady, price-insensitive bid.

Two engines of demand. Investment interest (bars/coins/ETFs) adds to stable jewelry and technology demand, keeping pullbacks shallow.

Rates and FX backdrop. With policy rates past their peak and recession/geopolitical risks elevated, the opportunity cost of holding gold is contained. Short-term swings from a stronger dollar or real-rate blips are noise against a supportive long-term trend.

Positioning

Use staggered accumulation (DCA) in spot/physical or local-currency savings plans.

Add satellite exposure via ETFs/futures to buy dips; assume limited depth of corrections while central-bank purchases persist.

Platinum : Structural Deficit + Re-rating Potential

Supply constraints. Consecutive, sizeable market deficits reflect weaker mine output (notably South Africa), softer recycling, and limited project pipelines.

Sticky industrial demand. Auto catalysts (including substitution effects), chemical and glass applications, plus hydrogen (PEM electrolysis & fuel cells) provide medium-term ballast.

Relative value. The gold–platinum price spread remains historically wide; normalization argues for mean-reversion upside in platinum.

Positioning

Accumulate on weakness via physical/ETFs; treat headline-driven sell-offs (e.g., power or mine-operation news) as opportunities.

Investment horizon : 12–36 months targeting a re-rating as deficits persist.

Key Risks & Mitigants

Gold: transient dollar strength/real-rate spikes, ETF outflows. → Mitigate with gradual entries and light futures hedges during macro data events.

Platinum : demand volatility from EV adoption pace; supply normalization. → Balance with position sizing, focus on cost-advantaged catalyst substitution and hydrogen growth optionality.

Geopolitics/production : South Africa or Russia supply shocks. → Hold a higher physical share and diversify entry points.

Implementation (Illustrative)

Core (Gold) 70 – 80% : physical/allocated, local-currency plans; add ETFs for liquidity.

Satellite (Platinum) 20 – 30%: ETFs/coins/bars : buy on dips aligned with deficit headlines.

Tactics : calendar-based DCA, event-aware top-ups (CPI/Fed meetings), and optional collars on ETF sleeves for drawdown control.

Conclusion : Gold remains a strategic hedge and reserve asset in a fragmenting world; platinum combines scarcity with industrial relevance. Maintain long-term overweight in both, with disciplined, staged entries and selective hedging to harvest volatility rather than fear it.