Platinum: get rich or die trying

My first (and maybe last) thread on FF.
I am a student of Price Action, Strat is my mentor (check his threads on the main FF site, probably the best service you will do to yourself in your whole trading career).
I trade FX, indices and metals, but I sometimes can't shake off my roots which stem from fundamental analysis (blame it on equities trading).

I am not here to discuss daily trading strategies, I am just here to bring you attention to Platinum, a metal rarer and more precious than Gold or Silver but which trades at half the value of both.

I don't want to try and convince you, I won't mention shooting stars, Bullish Engulfing Bars or fancy indicators to justify why it makes sense to load up on Platinum, let alone when it would make sense.

All I know is this:
- Precious metals have a negative correlation to US interest rates, and we are entering a multi-year easing cycle
- Precious metals are a safe haven in times of recession (check 2007/2008), and maybe we are entering such times
- Both Gold and Silver have already rallied significantly in 2019 and, although they will probably continue to appreciate, the potential for correction from current levels make me hesitate to buy.
- Platinum has been pounded for the last 12 years and, although it may continue to be pounded some more, safe haven seekers will quickly realize that it may be interesting to buy a metal which is rarer than gold and trades at a 50% discount to it although, historically, Platinum trades at a 30% premium versus Gold.

I don't intend to animate this thread regularly. I don't intend to enter into useless debates on whether Platinum is a bad investment because of the lesser use of it in the Auto industry or its current PA. I respect all contradicting views and wish you well in your endeavors, I am just taking a long-term position on a real asset that is rare and, although I probably don't have the correct timing, the current price and overall economic environment makes me comfortable about not only being aggressively long but also sharing my views, although this is in no way an encouragement, signal or any other commercial initiative and your decisions are yours to take and accept the consequences of.

Please don't PM me, I have nothing to add to this. If this helps even one trader, I have done my job for the trader clan.
Trade safe and don't forget that you will always have less time to live than money to spend, so invest your life wisely
D

Godspeed Fiddy

No doubt.

Very interesting take, darko. Solid points.

Thanks for sharing darko2010! You make some great points, but I think platinum may not be our best near-term bet for two reasons.

1. As a semi-industrial metal, it will see loss of demand if we're going into a recession.
2. As you said, it has underperformed gold. For that reason it seems like a good deal, but it generally pays to buy leaders and not laggards.

Considering the above, I'd pick gold over platinum. If you're concerned about it being over extended then I'd suggest waiting to buy when it breaks out to a new high. Buying on strength is very effective and can give you a low risk entry.

For a very long-term investment (10+ year horizon), I'm with you on buying platinum. Its a great deal when compared to gold given the historical relationship and I'm getting my son a platinum coin as a birth gift for just that reason.

Interesting perspective darko2010. Insightful thoughts. Hope you hang around on FF or MM for that matter. Always nice to have some thoughtful voices in these forums.

I guess my timing was fortunate

You tell 'em!

Thank you for sharing bruh!

Mike Jones, Paul Wall and SlimThug are responsible for the platinum rally in 07 tho

Coincidence?


Preach on Darko n gang

First test of Weekly SMA 200 since April 2013 on very above-normal volumes and historical high-low amplitude (see ATR).
Funny story, Platinum has been ditched by car manufacturers for diesel engines in favor of Palladium, but it seems that recent developments show that Platinum is actually quite interesting for electric car engines

Trade safe

She's making another run for it as gold drops.

I might for real, have to get up in on some Plat efts... anybody have any?

https://moneyweek.com/507382/platinu...of-the-future/

Platinum has had a good run the past few dayz

Yeah! And I think its headed to 4 digits petty soon and test 1030-45 region where the resistance comes in.

I don't make time-sensitive predictions, but I would expect it to re-test at least mid-high 800 before going 4 digit, especially given overall market sentiment on equities and recent optimism on recession/China. Both Gold and Silver are retracing and those retraces may last a few weeks, and therefore Platinum will probably under perform those metals until it really enters bullish territory. Just my thoughts, not a recommendation

OK Yeah something like that could happen.

Just my opinion, but now is an interesting time to get (back) in long on Platinum at current levels (61.8% fib weekly).
The Chinese markets open next Monday, and they are the key drivers behind recent surges in precious metals.
Again, trade at your own risk, but that's what I do as far as I am concerned, bearing in mind this is a long term position for me.

https://www.miningreview.com/platinu...stment-demand/

Platinum is clearly outperforming gold now:
It's looking to make another run at the $1000 level.