Gold soared in early 2020 as COVID-19 took the world stage.

It rallied to new all-time highs on global fear. And it even broke above the psychological barrier of $2,000 an ounce for the first time ever last year.

But then, as just about all assets continued moving higher, the surge lost momentum.

Prices have fallen since August. Gold is down 10% since then. But while the king of precious metals is struggling, another one continues to rise…

Platinum is up 5% over the same time frame. It’s now trading at its highest level in four years.

Importantly, more upside is likely, given what’s going on. History tells us platinum could rise another 9% over the next year.

Let me explain…

Compared to gold, platinum is an interesting precious metal. That’s because we actually use it for stuff outside of jewelry.

For instance, one of the biggest markets for platinum is car manufacturing…

Platinum is used to make automotive catalysts, which reduce emissions. That’s more important now than ever as emissions standards continue to rise. And that means the car industry generates a lot of demand for this metal.

So, platinum isn’t a pure industrial metal or a pure precious one. It’s a mix of both…

This mix has helped platinum rally higher while the other metals fall. And it recently hit new highs in the process. Take a look…

Platinum has taken off since bottoming in 2020. It’s up 79% in less than a year. But unlike what we saw with gold, the rally didn’t stop in the middle of the year.

Instead, platinum kept soaring. And it has hit multiyear highs to start 2021. That doesn’t mean the trend will slow down anytime soon, though.

Since 2000, similar 52-week highs have led to more outperformance in the metal. Check out the table below…

Platinum has steadily risen in price over the past two decades, moving up 5% a year. But the metal tends to do even better after a breakout like we’re seeing today…

Similar instances led to a 4% move in six months and a 9% gain over the next year. That’s almost double the return in a typical year.

Simply put, gold is falling. But you shouldn’t give up on other precious metals like platinum because of it.

Platinum is soaring right now. History says that can continue… And platinum could become the star of the precious metals market in 2021.

Good investing,

— Chris Igou

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Source: Daily Wealth