PL1!
Long Platinum near resistance levelStart adding here. Excellent risk reward at the bottom of the channel and near oversold levels.
2.41% loss at previous lows vs potential 8%/27% gains.
-------------------------------------------
For leveraged play on the bounce: Platinum Group Metals LTD
Platinum Trades at a Discount Against GoldPlatinum has been on a steady decline with slow demand.
Platinum trades at a discount to gold, a condition that occurred last month. The spread between the two precious metals has tightened, but were at the widest in two years. Platinum, although grouped in with gold and silver as a precious metal, is typically lumped into the industrial group with palladium. Platinum has many uses in industry, most notably in catalytic converters.
With economic data deteriorating globally, there has not been much demand for the metal, which is more rare than gold. The spread between the two widened because gold is an infamous “safe haven” hedge against economic and geopolitical uncertainty.
However, some analysts believe the spread will continue to tighten as platinum rebounded off its 5 year low. Caroline Bain, senior commodities economist at Capital Economics, said demand from China could spur a rally. Although demand has been weak of late, China is notorious for picking up platinum when it is discounted to gold.
Technically, volume has been weak and dropped off in recent weeks. Prices found support near $1,155, while a close below this level opens up a potential drop to $1,087/85. While, if prices can gain a little strength, prices could challenge $1,224/28 – near the 20-week EMA. The RSI is hovering just above an “oversold” level at 35, but prices have been comfortable within the lower bound.
A rally in platinum will likely need a catalyst for ignition.
Original Post...http://bullion.directory/platinum-trades-at-a-discount-against-gold/
Silver set to outperform gold and platinum next yearThe platinum/silver ratio indicates right now that silver will likely be the best precious metal to buy at the start of 2015 if all metals start rallying like in January 2014. Please see my previous ideas on silver and on the silver/gold ratio to see why this metal in particular has caught my eye lately. If you're bullish on precious metals right now, give preference to silver as it has the most to gain if a bullish metals market does set in.
