Long Platinum is a sensible allocation
31 December 2021 close Since we added Platinum to our portfolio a few months after the major drop versus gold in 2020, Platinum has performed exactly as expected auntil the market diced Platinum pl,ays no role anymore. The white metal has since weakened although not quite as deep as in 2020. As of last year, 2021, Platinum, which is the heaviest of the precious metals group and on much smaller supply, should start to play a major role in the future application of large industry move towards hydrogen energy production applications. Last week we have added a bit more Platinum as well as some Palladium which has dropped substantially from the May 2021 highs around $3,000. Palladium which is part of the Platinum group of metals will continue to play a crucial role in exhaust system catalytic converters in coming years where also hydrogen could become the fuel of choice alongside EV's. This is besides the fact that markets always return to equilibrium explained in the ratio value of Platinum versus Gold and Silver. Platinum ralliedfrom its historic 2020 bottom of 600 to 1300 and fell again towards 900 last year. The technical picture looks very promising still with Momnthly and quarterly risk weight having declined sharply indicating a string potentially rally going forward.
17 December 2021 close An uneventful period came to live as selling took over last Tuesday Wednesday and then returning to close in the uneventfull range of the past 3 weeks. However the bottom triggered serious bullish Daily divergence, whilst weekly looks to be in the process of doing the same. If that happens 2022 should have a very promising short term start. Monthly risk weight is simply moving into to lower risk during this 1 year correction whilst quarterly risk has dropped fast and could as easily turn up again if shorter term risk indicators take the lead. Fundamental long term strenght should come from increasing demand from larger industries looking to use hydrogen fuel applications for cleaner production. It just needs one industry to take a serious hedge on physical platinum and the metal will make our predicted move. We did take a very small physical Palladium position (2% of total metals) at $1593, 3% above last week's bottom. No Change to small overweight PT hold.
03 December 2021 close Platinum is showing a similar technical picture as for Silver. As we mentioned several weeks ago, Platinum will find itself at the mercy of increased industrial demand. This rarest and the heaviest of all precious metals historically trades above gold. Hence our long term slight overweight allocation also in response to still very positive technical readings in all time intervals at this moment. Support is 900 give or take a few dollars but even it slips below this likely produces a very low risk opportunity. This will be confirmed by the Gold to Platinum ratio. 'HOLD'
Platinum/USD risk position relative to Quarterly, Monthly, Weekly and Daily risk weight data.
(Previous update in brackets)
|PT Trend||↓ (↓)||↑ (↓)||↓ (↑)|
|PT % Risk
|29 (28)||25 (22)||76 (45)|
Portfolio allocation 40% (40%)