Bali news and views editor's comments:
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| Lawrence playing the markets While on vacation in Italy |
As most of my readers are well aware I've been in precious metals as a dealer or investor since 1978.
I made a bundle back in 1978 to 1980 and several times along the way.
Many of you may remember my prediction years ago that palladium which was selling at $200 an ounce would hit $800 an ounce which it did when I sold. I wish I would've held it because now it's $1,500 an ounce.
One metal that I believe is completely underpriced is platinum-selling right now roughly at $800 or $500 below the price of gold. There is absolutely no fundamental or technical reason for this.
This is why I agree with the gentleman below that platinum is going to surprise everyone. I've been buying on dips since last year this year made substantial profits on it already.
In fact this week there are pending strikes in South Africa at mines that specialize in platinum production which could cause platinum to surge. It may rise above gold where it normally is.
Remember you can start a platinum investment as little as $90 for platinum 1/10 oz coin, put in your safety deposit box and forget about it. You'll thank me in the future.
I don't sell the metal so I have no reason to recommend it other than to help you make money.
Summary
The laggard for too long.
Weak versus gold since 2014.
Weak versus palladium since 2017.
Even Rhodium has soared.
PPLT on all dips for the long term.
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We heard the word "patience" from the Fed last week when the U.S. central bank backtracked from their hawkish approach to monetary policy that dominated their decisions in 2018. Patience is "the capacity to accept or tolerate delay, trouble, or suffering without getting angry or upset." The synonyms for the term are forbearance, tolerance, restraint, resignation, stoicism, fortitude, sufferance, and endurance.
The Fed pledged that they would take a more prudent approach to increasing the Fed Funds rate over the coming months, but it will be economic data that ultimately drives their decision-making process. Following the late January message from the central bank, many market participants were anything but patient when it came to their approach to investing and trading. Stocks rallied in the wake of the Fed meeting as many called the pivot from a hawkish monetary policy the "Powell Put" on the stock market.
I have been a patient investor in the platinum market for far longer than I would like to remember. I have bought the metal on a scale-down basis since 2017 and have watched the price deteriorate and evaporate. With a renewed sense of fortitude, I am waiting for the day when platinum finally reflects its true nature as one of the rarest precious metals with a myriad of industrial applications. Based on the price action in gold, palladium, and even the rhodium markets, platinum remains far too cheap at its current price and patience is the one virtue I must remember so that I can participate when the long overdue correction to the upside finally arrives.
The Aberdeen Standard Physical Platinum Shares ETF product (PPLT) is a highly liquid instrument that does an excellent job tracking the price action in the platinum market as it holds 100% of its assets in platinum bullion.
The laggard for too long
Platinum continues to be a mangy precious dog with fleas, and on Thursday, February 7, the market provided me with another reminder of how non-precious metal continues to be these days. Gold settled Thursday's session with a loss of only one tick or 10 cents per ounce on the active month futures contract. Silver rose by 1.2 cents, and palladium futures posted a $6.50 per ounce gain on the day. On a day when three of the four precious metals that trade on the COMEX and NYMEX futures exchange were quiet to higher, platinum lost $16.50 per ounce on the active month April futures contract which put the price back below the $800 per ounce level as it settled at $797.30.
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