Platinum: Buy when nobody wants it | 16 October 2020


Platinum Price Forecast relative to
Long Term Monthly (LT-M) – Medium Term Weekly (MT-W) – Short Term Daily (ST-D) – and Hourly (not shown) data.

PLATINUM FORECAST

(Previous week in brackets)


Platinum/USD LT-M MT-W ST-D
865 (886)
PT Trend ↓ (↑) ↓ (↓) ↓ (↑)
Pt % Risk
Weight
70 (71) 37 (40) 38 (40)
PM Distribution
Total allocation 50% (50%)
Pt:20% Ag:45% Au:35%

Platinum/USD live price


16 October:: Platinum looks to be falling back into its hugely undervalued, unwanted status. We follow the same rule as a seasoned trader like Jim Rogers. In our case this applies to Gold, Silver and Platinum. Buy when nobody wants it and in the case of Platinum with a matching historically low price. Investors don’t like assets that do not show a potential for profit and most retail investors only participate after 80% of the total eventual move has materialized. We ignore short term pressure and may even add to this asset, whilst increasing total allocation to precious metals (now 50%), if it falls into the early 2020 price lows again. The other trigger is a break of 1037 if the opportunity to even exercise such a trade presents itself. No Change.

09 October:: The fact that Platinum (Pt) has incredible difficulty coming out of its long term demise only fuels technical bullishness. We wait for a break of 1037 to add to our allocation and increasing the overall portfolio allocation towards Precious metals. The position is a strategic hold supported by strong bullish long term divergence in March 2020. No Change.


GOLD/PLATINUM Ratio Price Risk Analysis

(Previous week in brackets)

GOLD/PLATINUM
Ratio
LT-M MT-W ST-D
220 (218)
Trend ↑ (↓) ↑ (↑) ↑ (↓)
% Risk
Weight
70 (67) 77 (74) 75 (62)
PM Distribution
Total allocation 50% (50%)
Pt:20% Ag:45% Au:35%

Gold/Platinum Ratio Chart

16 October:: Platinum fell marginally against gold and against our position. Our comment from last week prevails. Pt is dirt cheap, is massively undervalued being THE gold equivalent hard asset and looking for the Gold/Platinum ratio to return to a minimum equilibrium of 1:1. And that is whether gold goes up or down!

09 October:: Everything still points towards the ratio coming down. As with Pt/USD this is a long wait. Patience will be rewarded. Once Pt breaks 1037 the adjustment should be rapid. The metaphor is that Platinum left the party by foot in 2014 and will return before long in Formula 1.

Daily Gold / Pt Ratio

Weekly Gold / Pt Ratio

Monthly Gold / Pt Ratio

Quarterly Gold/Platinum Risk and Price Ratio 30 Sep, 2020

Quarterly Gold/Platinum Risk and Price Ratio 30 Sep, 2020



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Posted in A - All Financial Blogs | 2021 Forecast, PLATINUM FORECAST 2021 | EYEFORGOLD.