PLATINUM, WHAT IS IT AND WHY THE HECK WOULD I WANT THIS METALWhat is Platinum?
Platinum is a chemical element with the symbol Pt and atomic number 78. It belongs to the noble metals group, which also includes palladium, rhodium, iridium, osmium, and ruthenium. Platinum is characterized by its high density, malleability, ductility, and resistance to corrosion. These unique properties make it an invaluable material for various industrial applications.
Where is Platinum Found?
While platinum is relatively scarce, it is not as rare as some other precious metals. The majority of the world's platinum supply comes from two main sources: primary production and recycling. South Africa is the leading producer of platinum, contributing significantly to the global supply. Russia, Zimbabwe, and Canada also have substantial platinum deposits.
Platinum is often found alongside other minerals, such as nickel and copper, in ore deposits known as platinum group elements (PGE). Extracting platinum from these ores involves complex processes that require advanced mining and refining technologies.
Why Would You Want Platinum?
Jewelry and Luxury Goods:
Platinum's brilliant white sheen and resistance to tarnish make it a popular choice for crafting high-end jewelry. Platinum jewelry is not only exquisite but also durable, making it an ideal choice for engagement rings, wedding bands, and other fine accessories.
Catalytic Converters:
The automotive industry extensively uses platinum in catalytic converters, where it plays a crucial role in reducing harmful emissions from vehicles. Its catalytic properties make it an essential component in promoting cleaner air and environmental sustainability.
Electronics and Industry:
Platinum is a key player in various industrial applications, including electronics, due to its excellent conductivity and resistance to corrosion. It is used in the production of electrical contacts, laboratory equipment, and in the manufacturing of glass.
Investment and Financial Markets:
Platinum, like gold and silver, is considered a precious metal and is actively traded in financial markets. Some investors choose to include platinum in their portfolios as a hedge against inflation and economic uncertainties.
Platinum mining is a challenging and complex process. Extracting platinum from the Earth involves several intricate steps, and the scarcity of platinum deposits adds to the difficulty of mining this precious metal. Here is an overview of the key challenges associated with platinum mining:
Ore Extraction:
Platinum is often found in combination with other metals, forming platinum group elements (PGE) deposits. Extracting platinum from these ores requires advanced mining techniques. The ores are typically low in concentration, making the extraction process more intricate than that of more abundant metals.
Depth of Deposits:
Many platinum deposits are located deep underground, which adds to the complexity and cost of mining. Deep-level mining requires specialized equipment and poses safety challenges for miners. In some cases, mines may extend kilometers below the Earth's surface.
Energy Intensity:
The extraction and refining of platinum involve energy-intensive processes. The high temperatures required for smelting and refining contribute to the overall energy consumption of platinum mining operations.
Environmental Impact:
Mining operations, especially in ecologically sensitive areas, can have significant environmental impacts. Platinum mining may result in habitat disruption, soil erosion, and water pollution. Sustainable mining practices and environmental regulations are essential to mitigate these effects.
Labor Intensity:
Mining platinum is a labor-intensive process that requires skilled workers. The complexity of the operations, coupled with safety considerations in deep-level mining, makes it essential to have trained personnel.
Market Volatility:
The platinum market is subject to price fluctuations, influenced by factors such as supply and demand dynamics, economic conditions, and geopolitical events. This volatility can impact the profitability of mining operations and investment decisions in the platinum industry.
Technological Challenges:
The extraction and processing of platinum ores require advanced technologies. Developing and implementing efficient and environmentally responsible mining technologies is an ongoing challenge for the industry.
Despite these challenges, the demand for platinum in various industries, such as jewelry, automotive, and electronics, continues to drive the exploration and extraction of new platinum sources. Innovations in mining technologies and sustainable practices are being explored to address the difficulties associated with platinum mining and ensure its responsible and ethical extraction.
THE TECHNICALS
Sharp downtrend, weak, although down, it is a support trend.
Two strong (one stronger than the other) support trends, IF UNDER, THEN BUY is probably the rule for those.
It looks like there is some downside to come, which has been showing.
The ideal price targets are thicker, and basically mean, under perfect conditions, I'd exit and enter at these levels, however, nothing is ever perfect.
AS far as what the technicals say for price, I'd say there is a good chance it can maintain $800, however, there is a possible dip showing, which takes price down to $700. Again, these are both under or at major trends, and we can say that if price gets to these levels, I have a better than average chance at profit. AND if I'm wrong, I'm backed up by multiple support lines, which means less time in the red.
Other scenario is where the bullish momentum keeps moving up at we head up to 1200 or so before hitting that huge dip. However, I tend to see this as the less likely option.
RSI is showing the dip, along with various other indicators as coming in the short term and being backed up with support and buying in the longer term, this doesn't include a black swan event, which would theoretically take the price way down, and rocket to all time highs, as platinum will likely hold value.
Good luck!!
Personal opinion, I'm bullish long term from a fundamental side and technical side.
