Today is a very interesting day in the markets. Palladium futures are down to $1463, a drop of $53 dollars. Palladium has had a huge run. While I do expect that the deficit in Palladium will continue, and that Palladium will ultimately trade higher, given my overall view of mispricing in the Platinum Group Metal (PGM) space, it certainly also is consistent with the way markets always work, that stuff goes up, and trades down.
In the meantime, July Platinum as we speak is $868.7. The market is torn; it originally traded up over $10 dollars and now is positive by $2.90. The markets are trying to figure out what in the world is going on with Platinum?
The answer is simple, and fully discussed in my eBook. There just is not a lot of this stuff. I would rather be a buyer in the $800s than in the $900s, or $1000, or $1100, or $1200 ... all numbers that in the scheme of things are just not expensive levels for Platinum (Pt).
Yes, markets go up and down, and given the uncertainty in the Pt space, I would buy part of a position now... lets call it 1/2 ... and then leg in to another 25% with the market trading lower, or higher, depending on the feel, leaving the remaining 25% as fully opportunistic.
So yes, put on your buying boots, and start a position. Be prepared to weather moves lower, but I would still jump in.
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