Yes, I am a Platinum bull. Ok, I have been gored, a bit, though my average cost is $802, and I did sell half of the position at $892... At the moment, Platinum is up a few bucks, at $816, having traded as low as $807.2.
So what gives? It's the market, my friend !!
I have been clear throughout that I think platinum, as the rarest, element on the planet, and one that is needed, makes no sense at a $6.5 billion market cap, representing annual mine production and recycling.
Meanwhile, the Eskom situation is a serious, legitimate problem and one that I have written extensively about. The looming, possible Platinum strike, while impacting mining companies, should in theory lead to higher prices, but perhaps there is some supply excess out there at the moment that will temper this. More importantly, I think there are traders who are just not believers who will provide supply... even if, ultimately, they will prove to be on the wrong side of the trade.
Anyway, I try and step back and observe the momentum in a market; it has been consistently down since $920... but it's wrong!
Staying power is the key, since the equilibrium price of platinum is dramatically higher than where we are today.
Leave a comment