PLATINUM — Major Wave Up Can Start Soon
While the dollar is rapidly losing its value and all other markets are going crazy, platinum, a wonderful precious metal with unique properties, one of the rarest elements on Earth, is still trading at 2004-2005 price levels.
Is it a good buying opportunity right now? Let's see.
The move from 1998 to 2008 is clearly a major impulse wave. Judging from gold's perspective it can actually be a wave III, but I'll label it as I for now as it doesn't matter at the moment. Here's a price history chart starting at the end of the 19th century if you want to see the big picture:
https://sdbullion.com/media/opti_image/webp/wysiwyg/blog2/Platinum_Price_History_Platinum_Price_140_year_chart_in_US_dollars_SD_Bullion.webp.
The period from 2008 to 2020 is an ABC correction and the COVID crash was the end of the macro corrective wave touching price levels between 0.618 and 0.786 retracements from 2008 highs. Monthly candle close was just above 0.618 in fact.
EDIT: forgot to include fibs, see here:
The next move in 2021 looks like a typical wave 1 and can be the first subwave of the next higher degree wave.
A wave 2 correction then followed and price action confirmed support at the $900 zone. Which means the next wave up can be just around the corner!
Platinum is also hugely underpriced when compared to gold and the GOLD/PLATINUM ratio is showing bearish signs as I discussed in this idea:
And with prices still so low considering inflation it is likely that downside potential for platinum is quite limited.
This all makes platinum a low-risk investment and in my opinion it's a good idea to dedicate some portion of capital to this great metal.
One way to get exposure is to buy ETFs like PPLT and PLTM. These are not very liquid instruments and not very suitable for short-term trading but will work for longer term investments.
If you want some additional confirmation, you can wait for breakout of this trend line:
Is it a good buying opportunity right now? Let's see.
The move from 1998 to 2008 is clearly a major impulse wave. Judging from gold's perspective it can actually be a wave III, but I'll label it as I for now as it doesn't matter at the moment. Here's a price history chart starting at the end of the 19th century if you want to see the big picture:
https://sdbullion.com/media/opti_image/webp/wysiwyg/blog2/Platinum_Price_History_Platinum_Price_140_year_chart_in_US_dollars_SD_Bullion.webp.
The period from 2008 to 2020 is an ABC correction and the COVID crash was the end of the macro corrective wave touching price levels between 0.618 and 0.786 retracements from 2008 highs. Monthly candle close was just above 0.618 in fact.
EDIT: forgot to include fibs, see here:
The next move in 2021 looks like a typical wave 1 and can be the first subwave of the next higher degree wave.
A wave 2 correction then followed and price action confirmed support at the $900 zone. Which means the next wave up can be just around the corner!
Platinum is also hugely underpriced when compared to gold and the GOLD/PLATINUM ratio is showing bearish signs as I discussed in this idea:
And with prices still so low considering inflation it is likely that downside potential for platinum is quite limited.
This all makes platinum a low-risk investment and in my opinion it's a good idea to dedicate some portion of capital to this great metal.
One way to get exposure is to buy ETFs like PPLT and PLTM. These are not very liquid instruments and not very suitable for short-term trading but will work for longer term investments.
If you want some additional confirmation, you can wait for breakout of this trend line:
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