Tuesday, July 02, 2013

Buying From Panic Sellers: A Forgotten, Unloved Precious Metal


This article was originally published on my new site and newsletter, Contrarian Profits.
The panic selling in precious metals is giving us a special contrarian treat. I'm talking about a former inflation hedge sweetheart that's being unfairly dumped and is now trading very close to its cost of production.
But as savvy resource investors know, the cure for low prices is low prices. They know that when the price to make something drops below the price you can sell it for, less will be produced.
If you listen to commodities guru Jim Rogers respond to the talking heads on CNBC when asked for his favorite resource pick, he tells them he begins his research by looking at what's down the most.
That's where we take our clue and spotlight a "manic" metal that sometimes trades as a store of value, like gold and silver. At other times the metal – platinum – changes hands like an industrial metal, ruled by supply and demand.
Too bad these days it's being kicked to the curb like an unloved, unwanted inflation hedge. Yet it is still on the hook to meet industry demand. We need it for clean air, and consumers desire it for high-end jewelry.
This means the current price of platinum – just $1,319/oz. - is a real problem.
Demand for platinum should surpass supplies by a record amount this year – anywhere from 200,000 ounces (according to mining giant Lonmin), to 844,000 ounces (according to HSBC).
If the price drops more, South African miners – who produce more than 70% of the world's supply – will probably cut more production.
In fact, the two largest platinum miners – Anglo American Platinum and Impala – say their cost to get it out of the ground is $300 to $500 more than today'"street" prices.
Yet platinum demand is more stable than its cousins. Unlike gold and silver – whose long-term trends depend heavily on investor sentiment – platinum's demand comes from two steady sources:
  • Nice Jewelry - About half of the platinum mined each year goes to the jewelry industry. China is the big consumer, and its demand is steady.
  • Auto Emissions – Platinum is also used to clean up the air we breathe. It's a key component in cars for filtering vehicle emissions. Demand is growing, with more cars on the road and tightening emissions standards (even in China and India).
Platinum is not usually recycled – it is mostly "used up" for good. The only new supply is the amount dug up each year.
Platinum is already down more in dollar terms than you'd expect – maybe luring some investors into this trade early. This is because platinum's "native currency," the South African rand, has been weak. So mining costs are actually a bit lower than usual.
Beaten up with gold and silver, to four-year lows.
(Source: StockCharts.com)
The recent smack down of money-printing hedges, and selling from early traders giving up, presents us with a very interesting risk/reward setup. As contrarian investors, it's time to consider taking the other side of this panic selling.
There are some easy ways to own platinum thanks to ETFs. My favorite is the ETFS Physical Platinum Shares (NYSE:PPLT), because they actually have the stuff – they buy and store the platinum in vaults.
Most investors don't know the current carnage in the precious metals is tanking the price of platinum below viable levels. That means now is the time to buy, or as Warren Buffett would say, "Be greedy when others are fearful."

74 comments:

Unknown said...

SELL GOLD AUGUST 26120 TGT 26050, 25950, 25900 STOPLOSS 26370
SELL CRUDE OIL BELOW 6100 TGT 6080, 6050, 6000 STOPLOSS 6200
get more mcx live tips
and
metal tips

Unknown said...

SELL NICKEL JULY BELOW 810 TGT 809, 807, 804 STOPLOSS 817.50
SELL LEAD JULY BELOW 124.50 TGT 124, 123.50, 123 STOPLOSS 126

gold tips

and

commodity tips

Niva Capital Advisory said...

On the daily chart, prices have reversed after taking resistance of $1300 levels.
Daily stochastic is in a sell mode and prices are trading above the short term
averages.
NIVA CAPITAL ADVISORY
www.nivaca.com
FOR FREE TIPS ON COMMODITY MARKET
CONTACT NO.-9036055-100/200/300

monil joshi said...

Sell- MCX Silver below 41000.0 with Target 40920/40850/40790.0………. get more free calls for stock and commodity TODAY STOCK TIPS and FREE NIFTY TIPS

monil joshi said...

Monday 22 July free stock trading calls Buy- ITC with Target 370/371/372.50 SL- 366.0 click on TOMORROW STOCK TIPS and FREE NIFTY TIPS

Rahul Solanki said...
This comment has been removed by the author.
Money World Research Pvt Ltd said...

This post is so informative and makes a very nice image on the topic in my mind. It is the first time I visit your blog, but I was extremely impressed. Keep posting as I am gonna come to read it everyday!
stock Market tips
Commodity tips
Equity tips

Unknown said...

Indian commodity market look down trend today, get sure shot tips and call visit free option tips
gold silver tips

Unknown said...

For most accurate and sure shot calls in MCX commodity market trading one must follow the quality call services like Best precious metal tips

Unknown said...

Good blog, very useful content and information shared Check commodity tips

Unknown said...

Good blog, very useful content and information shared Check commodity tips

Unknown said...

Good blog, very useful content and information shared Check commodity tips

Unknown said...

It can't be a better place to read and improve knowledge about commodity or then your blog. It was a pleasant time which i

spent on your blog. thanks for sharing such a valuable information with us. Hope to visit your blog again and read even more

interesting articles from you Futures Trading in Agri-Commodities.

Unknown said...


This article is mind blowing I read it and enjoyed. I always find this type of article to learn and gather knowledge Good blog, very useful content and information shared Check commodity tips

NIFTY TRADING TIPS said...


Its good to be here, very nice post, the content is amazing, keep posting friend it will be very helpful for everyone, Thanks for sharing. I really liked it.you can also read nifty trading tips

Nidhi Singh said...

EPIC Commodity Tips for Rhodium Pack is BUY BIOCON FUTURE ABOVE 440 TGT 442,445, 448 SL 436.

Unknown said...

Need to know about commodity trading.Visit us at Online trading Dubai-Century Financial Brokers

Unknown said...

Many predictions are made by experts on commodity market trading but only the best Agri tips provider can help you by providing profitable tips always.

Unknown said...

This article is mind blowing I read it and enjoyed. I always find this type of article to learn and gather knowledge Good blog, very useful content and information shared Check commodity tips

Unknown said...
This comment has been removed by the author.
Kiyara said...

I really appreciate your post and you explain each and every point very well. The content is amazing, keep posting friend it will be very helpful for everyone.
____________________________
Get free mcx news reports

Siksha Chouhan said...

It's hard for me to use this blog because that annoying toolbar is everywhere!!!! I wouldn't comment or like your blog until you get rid of it--that toolbar makes me dislike your blog!!!

Stock Tips

Alankit Group said...

That is awesome information thanks for sharing it.online commodity trading

Commodity Tips said...

Its such you read my mind. you seem to grasp so much approximately this.,like you wrote the booking it or something. I believe that you just could do with some percent to pressure the massage house a bit, but instead of that, that is excellent blog. A fantastic read. Awesome post I have found it today.
Accurate

MCX & NCDEX Tips

Unknown said...

Your blog is very useful to all the people especially for traders. Very nice and important information is there in your blog.

best commodity tips

Unknown said...
This comment has been removed by the author.
Imran Khan said...

your post is good and full of information; I would like to thank you for sharing such a usable and wonderful information with us.

Unknown said...

All the update about commodity market was exceptionally well given by author. Thanks for making this blog which helpful for commodity traders.
best ncdex tips provider

Unknown said...

Nice Blog. Thanks for shearing this informative blog with all of usBest stock tips

Imran Khan said...

I enjoy reading a post that will make people think. Also, thanks for allowing me to comment!Epic Research indore

Unknown said...

Precious metals update for today given by Epic Research includes that Gold trading range for the day is 28407-29017.

Unknown said...

Regarding the precious metals, I found that Epic Research says the Gold trading range for the day is 28116-28428.

Unknown said...

Bullion is fluctuating more these days. You have here given a great report on it so anybody can easily knows about the future fundamentals about it. Thanks for sharing here.
Stock Tips on Mobile

Siksha Chouhan said...

India has almost achieved its yearly allocated fiscal deficit target i.e. 99% of the target assigned which is 4.1% of the GDP. Fiscal deficit is the difference between the governments income and expenditure. Chief economic advisor Mr. Arvind Subramaniam has indicated that government will reduce its fiscal expenditure to remain close to its target.
MCX Tips

Unknown said...

You are providing share market news which metal is best for buy or sell, Thanks for sharing...
CapitalStars

suhani varma said...

Blog is good, post it regularly will help in commodity trading tips

Unknown said...

This is such good and very useful information you share here TO GET BEST CASH TIPS & Stock Tips-

stock tips
free trial

Unknown said...

I was looking for something like this ,Thank you for posting the great content……I found it quiet interesting, hopefully you will keep posting such blogs!!!!!!!!!!!!!!!
Commodity tips

Unknown said...

A fine quality educational blog! I like the way blogger presented information regarding the concerned subject. Thanks for posting such a nice blog.!!!!!!!!!!!!
Stock cash tips

Unknown said...

Fundamentally, oil prices are already too low if you look at the medium to long term," said Nunan, "but how far will sentiment continue to drive prices is difficult to say.
crude intraday tips

commodity tips provider said...

Thanks for sharing informative post with us. The tips provided here was awesome.


Mcx Tips

Sonal Jain said...

Silver August future has gained more than a percent in morning deals at $ 18.102.
CapitalStars

Clara Mellor said...

Markets open in red; Healthcare stocks plunge .capitalstars

The GRS Solution | Best Stock Trading Services Provider said...

A strong technical knowledge and experience is required to trade in MCX.The GRS Solution procides full support and guidance to all the traders.
stock market compnay

Unknown said...

Your analysis on market is very knowledgeable & useful for us. Check out this also
Market Risk Solutions

Sonal Jain said...


Copper prices dropped after U.S. President Donald Trump said any trade deal with top metals consumer China would "need a different structure"commodity

Ravish Pardeshi said...

we provide the best trading for the commodity market. where good prediction for resistance and supports help in the predictability of good gold.
GOLD AUG. : SIDEWAYS
RESISTANCE 2 : 30800
RESISTANCE 1 : 30600
SUPPORT 1 : 30300
SUPPORT 2 : 30100

SILVER SEP. : SIDEWAYS
RESISTANCE2 : 40400
RESISTANCE1 : 40100
SUPPORT1 : 39700
SUPPORT2 : 39400

COPPER JUNE. : SIDEWAYS
RESISTANCE2 : 458
RESISTANCE1 : 455
SUPPORT1 : 449
SUPPORT2 : 446

CRUDE JULY. : SIDEWAYS
RESISTANCE2 : 5170
RESISTANCE1 : 5120
SUPPORT1 : 5020
SUPPORT2 : 4970


for more info you can visit https://commoditytips.org.in/

Sonal Jain said...

An important key to investing is to remember that stocks are not lottery tickets.financial advisory company

Unknown said...

One thing is sure the person who read your blog will never go in huge losses he will either make profit or he will be able to come out from the market at right time ,,,,,,,,,
Stock tips

Nalini Ranjan Pandey said...

nice

Rahul Solanki said...

Very nice info. I just stumbled upon your blog and wanted to say that I’ve truly enjoyed surfing around your posts. After all, I’ll be follow to your page and I hope you write again very soon! Share Market Training in Indore

Sonal Jain said...


This good content for learning if you want to learn more about the market then you can also visit best share market blogs..financial advisory company

ANEET TRIFID said...

To Get good return in commodity trading, a trader should be updated with the commodity market news and market trend. Trader or investor should also knowledge about fundamental as well technical knowledge about whatever trader wants to trade i.e. if a trader wants to trade in gold, silver, Base metal, and energy or any of these so trader should be aware of fundamental and technical data of gold, silver, Base metal energy etc. Trifid Research Stock Investment Advisory company is best of them to provide online mcx trading tips

Swapnil Kelkar said...

Very well written report on commodity market

Mishel said...

We provide you services on Intraday , F&O, Commodity and finally the one in which all are interested i.e. Commodity. Our team is highly skilled with experienced analysis. Our efforts are to provide you more & more profit in every trade.
https://www.moneymarketmanthan.com/freetrial.php"

Shalini said...

Blog is useful for me where i am getting all the information about the commodity products must follow this blog and can also refer karvycommodities

wealthbuildup said...

I have read your blog, It is very useful ,Thank you very much.
Commodity HNI Tips
Commodity Gold Tips

the equicom said...

Theequicom blog is one of the finest resources for latest and important Indian stock market updates. It also provides you daily market gainers and losers.

Theequicom Financial Services Reviews
jobs in The Equicom


Rahul Solanki said...

The MCX Gold rate showed sideways to the bullish trend for future trading session, we will carry on to suggesting more bullish trends, if rate manages on top of the 35100 and if rate takes alteration from higher side to lower side then it can check correctional level of the s34700.
Free MCX Tips

abhishek said...

I have read your articles many times and I am always inspired by your tips and knowledge. Thank you for sharing.
Stock cash

Barbara Pantuso said...

project
hacksaar
sicom

blogs said...

chokepointgaming
se7team
gentlemenesports
eniquityesports
legionesports
flexabilityesport
gamersleague

Emma Ludwig said...

Very impressive post.
Tips for Writing a Good Blog

Barbara Pantuso said...

I like your blog. Thanks for sharing.
How Good Delivery Service is Beneficial for Online Business

Helen Henson said...

cafebabel
exchangle
artfire
crunchyroll
csslight
tripadvisor

Barbara Pantuso said...

catchthemes
ethicalhacker
spigotmc
cash
rapidapi

Emma Ludwig said...

mollybeans
infinity
forums
bidinc
dmkproject
marijuanarecipes
snailgame

Helen Henson said...

colourinyourlife
ownedcore
vietnamta
ebooks
ccm

Helen Henson said...

I Really like your post. Thanks for sharing.
How to Take Care of your Skin with Rose Petals?
HOW TO TAKE CARE OF YOUR SCALP BY RESOLVING HAIR FALL PROBLEMS?
Is it Possible to Embark Upon a Business Without Money?

Shirley Kemp said...

tobii
bremont
filesharingtalk
indahnesia
vpopwire

Best Stocks Tips said...

Thank you for sharing This knowledge. Excellently written article.
Portfolio Advisory Services

Pharma Franchisee India said...

Great work and keep sharing your valuable article posts on the regular basis. Pharma Franchisee India is one of the most trusted pharma companies portal who brings you the contact details of the verified PCD pharma companies for monopoly pharma franchise.

Best call center services said...

Such a great and informative article. Thanks for sharing.
custom database development services

rubywilliams said...

While Fildena 120 mg is generally well-tolerated, like any medication, it may cause some side effects. Common side effects may include headache, flushing, indigestion, nasal congestion, and visual disturbances. It is important to consult a healthcare professional if these side effects persist or become bothersome.

Most Popular Articles This Month