The Challenge of Platinum - A Serious Commentary That Is Humorous & Insightful

Andrew Hecht, a long time experienced commodity professional and thoughtful commentator across the commodity spectrum, just wrote a piece on platinum on the Seeking Alpha platform that did make me smile, though both Andrew and I are frustrated bulls. Here is an excerpt of what Andrew had to say:

"Platinum is cheap, but it is ugly. Platinum offers the best value proposition in the precious metals sector, but it is a dog. Platinum will come back one day, but it is the most frustrating position of all my holdings. I am a committed platinum investor, and time will tell if I should be committed for misreading the fundamentals of this metal."

I do find the price action in this remarkably rare and essential metal fascinating. To me it highlights the inefficiency that can exist at times in all markets, until, finally, underlying fundamentals scream so loud that even those with blinders on see the daylight. That is my posture on the platinum group metals (PGMS), and I echo Andrew's questioning of whether he should be committed, or so committed!! :-)

Anyway, as we speak July Platinum is trading at $807.5, and though there have been many opportunities to buy under $800, I view this level as an ongoing gift to investors with fortitude, confidence, and hopefully a bit of a sense of humor.

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