Back in July, Platinum closed just below the important round number level of $1000 I outlined in my post titled "Platinum Could Hit The Floor". In that post, I clearly pointed out that the metal is in big trouble. And that was almost two months ahead of the Volkswagen scandal that dropped the bomb on the future of the diesel car industry and its subordinate autocatalyst sphere with its large demand for Platinum.
It's ironic that a two-lettered emission gas (NO, nitrogen oxide) knocked out a two-lettered company (VW, Volkswagen), that can be written in the following equation: VW+NO=K.O. Continue reading "A Falling Knife Powered By "Clean" Diesel"
Today I prepared for you the year-to-date comparative dynamics of the metals versus the top financial instruments including the Dollar Index, crude oil and the S&P 500 index.
Chart courtesy of TradingView.com
As seen in the above graph, half of the instruments started the year on an upbeat tune, lead by Silver and followed by Gold, Platinum and the Dollar Index. The other half started with a nose-diving fall, especially crude oil followed by Copper, Palladium and the S&P 500 bringing up the rear. Continue reading "Year To Date Dynamics: Metals Versus Top Assets"
The Global Outlook: Platinum Is In Serious Trouble
Chart courtesy of TradingView.com
Indeed, this metal is very tricky. One moment it can be flying high, then it can take a swing hitting the bottom and again and again. This time around, Platinum is on its way down, falling like a hot knife through butter. Without any problems, it has lost $500, down from $1500.
The minor swing was detected at the $1200-$1300 level on the monthly charts and then the metal slid even faster. The price has easily broken below both the 2006 low at $1059.60 and the 1980 high at $1045. The psychologically important round number level at $1000 has fallen even quicker. Continue reading "Platinum Could Hit The Floor"
Today I prepared Platinum macro data charts to show industry development for the last decade.
Supply And Demand
Chart: Aibek Burabayev; Data Source: Johnson Matthey, LBMA
In 2004 at the beginning of the review period, supply and demand were ideally balanced at the 7.2 million ounces (Moz) mark at $861/oz price. A year later, both Platinum supply and demand showed decent growth, 2005 outweighed 2004 for 0.7 Moz on the supply side and 0.8 Moz in demand; the price had a modest gain of one hundred dollars. Continue reading "Platinum Demand Hit Decade High Amid Falling Price"
In October of last year, we published a platinum-market overview in the Casey International Speculator and concluded by saying: "We recommend avoiding South Africa, and in this context it means staying away from platinum producers located there. If the energy situation spins out of control, miners' strikes continue, and the local trouble puts an indefinite halt to a significant portion of platinum production, some speculative opportunities may appear in the physical-metal market or platinum-backed investment tools. If we see signs of that happening, we may speculate on the results."
Although some of the events that we expected did occur this year, the "indefinite halt" has not. The nationwide wildcat strikes that ended in mid-November suggested that that scenario was possible, but the bubbling pot simmered down. We were asked by our readers to share our view on the implications of those actions on the price of platinum.
So, what is the outlook for the platinum market now, and is it time to buy? Continue reading "Fear vs. Fundamentals in the Platinum Market"