Platinum Prices: Look Out Below…

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• Hi, My name is Justin and Im with Commodity
  Trading Research, today were reviewing our
  recently published article

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Platinum Prices Look Out Below
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Platinum Prices Buy This Heavily Oversold Metal
Now?
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The commodity selloff of the past year has been
hard to ignore. Hard assets as a whole have
suffered from a surging US Dollar and ongoing
concerns over global growth.
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One of the most noticeable markets controlled by
commodity bears is platinum.The once lustrous
metal is down 35 from this time last year, and
is suffering from a 20 downturn in 2015 alone.
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Its an outrageously bearish chart
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As you can see, after putting in a relatively
strong January 2015 performance the metal has
gone straight in the gutter. This years selloff
accelerated the past two months, which took
platinum below 1,000 an ounce for the first time
since early 2009.
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With the metal trading at the lowest price in
years, is it time to buy? Only if you like
losing money
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With the metal stuck in a debilitating technical
downtrend, buying now is akin to stepping in
front of oncoming freight train.
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Remember, trying to pick tops and bottoms in
markets is one of the worst mistakes a trader can
make. For more of the bad habits traders tend to
make, and how to alleviate them, read this
article.
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With that said, you can possibly make a case for
buying platinum right now if youre an investor
with a long time frame, and can withstand even
lower prices. Speaking of lower prices, look at
this long-term chart
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As you can see the metal has nearly 150 an ounce
further to fall before it reaches the 2008 low at
800 an ounce. Given the overwhelmingly bearish
sentiment and disastrous chart, this important
price point will likely be realized before 2015
comes to an end.
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Is there any hope for platinum in the long
run? As bad as this market is right now, bulls
will eventually return.
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You see, South African platinum miners are
falling on hard times with the metal they produce
diving lower with each passing day.
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As you may know, South Africa is home to the
worlds largest Platinum Group Metal (PGM) mines
and holds around 80 of the worlds proven
reserves.
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Platinum prices are so low that a large swath of
the South African PGM mining industry is now
producing the metal at a loss. The situation is
so bad at Lonmin, one of the larger South African
miners, the company is laying off 6,000 workers.
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Folks, its only a matter of time before layoffs
and mine closures become widespread. Once the
South African PGM mining industrys capitulation
point is reached, thats when bulls will likely
return to the platinum market.
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With that said, its very challenging to
accurately predict at what price that will
happen. For now its best to just sit back and
watch the fireworks as platinum plummets to new
multi-year lows.
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Is there a way to capitalize on plummeting
platinum?
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Of the three platinum based commodity exchange
traded funds available to investors, theres only
one I feel relatively comfortable trading. The
ETFS Physical Platinum Shares PPLT has a decent
amount of intraday liquidity with a manageable
bid/ask spread.
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As this point, shorting PPLT until platinum hits
800 an ounce is your only viable strategy for
profiting from the metal.
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