Best of the Week
Most Popular
1.Stock Market Continues Defying Gravity, Dow New All Time High - Nadeem_Walayat
2.America Superpower 2016 - Ian Bremmer
3.The US Dollar and the Precious Metals Complex - Rambus_Chartology
4.UK Immigration Crisis Could Prompt BREXIT, Propelling Britain Out of EU Despite German Factor - Nadeem_Walayat
5.The “Real Flash Crash” Will Scare You to Death - Shah Gilani
6.Gold Price Trend Forecast - Bob_Louka
7.UK Deflation Warning - Bank of England Economic Propaganda to Print and Inflate Debt - Nadeem_Walayat
8.Gold Lifeboat to Global Economies “Titanic Problem” Warn HSBC - GoldCore
9.Will Interest Rates Ever Rise? - BATR
10.Who’s Killing the Stock Market? - Shah Gilani
Last 5 days
This New Currency Could Wipe Out the Euro - 28th May 15
US Housing Market - Something Smells Fishy - 28th May 15
US Economy – Semi b2b Amps Up its Trend - 28th May 15
U.S. Fed Exported QE Travesty: Meet The BLICS Nations - 28th May 15
World War D—Deflation - Secular Bear Markets Analysis - 28th May 15
George Soros Warns of “Third World War” - 28th May 15
Why You Shouldn't Try to Invest Like Warren Buffett - 28th May 15
Stock Markets Buy and Hold is Back! - 28th May 15
We're Now Frighteningly Vulnerable to a Bond Market Crash - 28th May 15
Austerity, Economics and Religion - 28th May 15
National Holidays London and the Magic of Legoland UK Review - 27th May 15
Imminent Stocks Bear Market Signaled by Dow Theory ... - 27th May 15
Gold Price Has Bottomed – More Evidence - 27th May 15
Three Reasons You Shouldn’t Try to Invest Like Warren Buffett - 27th May 15
Gold Is “100% Guarantee from Legal and Political Risks” States Russian Central Bank - 27th May 15
Don't Drown in the Sea of Global Debt - 27th May 15
Three Reasons Why Carl Icahn Is Wrong About Apple Stock - 27th May 15
Crude Oil Price Stochastic Signals - 26th May 15
Why the Stock Market Will Crash - 26th May 15
GDP, Inflation, Employment Economic Statistics: It’s All a Lie - 26th May 15
Introduction to Peak Food - 26th May 15
Should We Dump the Euro? - 26th May 15
A Geopolitical Net Assessment of Europe - 26th May 15
Stock Market Top in Place? - 26th May 15
Best Cash ISA SBI 2.3% - 2.8 Year Fix, UK Interest Rates 2016 - 26th May 15
China Sets Up Gold Bullion Fund For Central Banks - 25th May 15
Is The Silver Trade Getting Crowded? - 25th May 15
Money Murder Mystery: Who Killed the Stock Market? - 25th May 15
Why Do We Celebrate Rising U.S. House Prices? - 24th May 15
Mario Draghi’s Slippery Downward Slope - 24th May 15
Gold : Truth is Stranger than Fiction - 24th May 15
Facebook Stock Price Forecast - 24th May 15
Make a Killing on the Coming Energy "Debt Bubble" - 24th May 15
Stock Market SPX Uptrend Inflection Point - 23rd May 15
What You Know for Certain - Huge Demand for Gold And Silver - 23rd May 15
Are We in Another Credit Bubble? And Is It Different than Before? - 23rd May 15
The “Real Flash Crash” Will Scare You to Death - 23rd May 15
Venezuela: No Rule of Law, Bad Money - 23rd May 15
Robots That Can Beat the Market by 100% - 23rd May 15
Why Shake Shack Stock Is a Bad Investment - 23rd May 15
Gold Price Primary Driver Bullish - 23rd May 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Biggest Debt Bomb in History

Platinum is the Next Profit Opportunity in China's Commodity Boom

Commodities / Platinum Feb 13, 2013 - 05:01 PM GMT

By: GrowthStockWire

Commodities

Matt Badiali writes: Over the last month, I've shown you how China's economy has seen a resurgence in commodities imports like copper, iron ore, uranium, and coal.

China is the largest importer of industrial commodities in the world... So when its demand picks up, it's bullish for the sector.


Last week, I showed you the most compelling chart of all – China's monthly car sales are soaring again. And that's the launching pad for the next exciting installment of the commodity boom story...

I'm talking about platinum. And if you buy platinum assets right now, chances are good that you'll double your money over the next year or two.

Platinum is a "dual purpose" metal. It's used in jewelry... and it's considered a "store of wealth," so it serves as a precious metal like gold. But it's also an industrial metal. It is used to make catalytic converters – which reduce a vehicle's pollutants – and as a catalyst for refining gasoline and diesel fuel. Those two sectors account for 57% of the platinum produced per year. And demand is soaring...

China is the world's largest car market... and its sales were up 31% from July to December. Car sales in the U.S. – the world's second-largest car market – are the highest they've been in five years.

But while demand soars, platinum supply is in big trouble...

The metal is extremely rare... Unlike gold, which is mined on nearly every continent, 72% of the world's platinum supply comes from one volatile country: South Africa. Production in the country peaked in 2006 and has fallen 20% since. Thanks to mining strikes, aging, drying-up mines, and power-supply problems... platinum production fell 12% from 2011 to 2012 alone.

This is causing a big imbalance in platinum supply and demand. That should result in rising prices. But the market hasn't seemed to notice...



Thanks to economic troubles in the U.S., Europe, and China, platinum fell – along with the rest of the commodities market – in 2011 and 2012. Prices declined to $1,400 per ounce. And they have bounced between $1,400 per ounce and $1,700 per ounce since.

More importantly, platinum is trading at a discount to the price of gold.

Platinum has only fallen below the price of gold three times in the past 37 years. It historically trades at a 30%-70% premium to the price of gold. So based on history, platinum can't stay this cheap for long...

As the global economy continues to recover – and automobile consumption increases along with it – we should see platinum prices rise at least to their long-term average of 30% above the price of gold. That would put the platinum price around $2,200 per ounce today.

The fundamentals look ripe for a huge move higher. But until that happens, the market is giving us an incredible opportunity to take advantage of these dirt-cheap prices...

One of the best ways to do so is through shares of the Sprott Physical Platinum and Palladium Trust (NYSE: SPPP). SPPP is a new platinum fund formed by famed resource investment management firm Sprott Asset Management. And it gives you exposure to physical bullion – without involving the banks.

This fund has an extra benefit for U.S. investors... If you hold the units for at least one year, gains you make on your investment are only taxed at a maximum of 20%. That is well below the 28% tax on most bullion investments.

So far, 2013 is offering us far more commodity investing opportunities than we saw last year. Platinum is the next exciting installment. I hope you take advantage.

Good investing,

Matt Badiali

http://www.growthstockwire.com

P.S. Platinum is one of the cheapest investments you can make anywhere in the resource sector right now. So in the most recent issue of my S&A Resource Report, I introduced readers to one of the best ways to play it. If things go right with platinum prices and this miner's projects, we could easily double our money in 2013. To learn more about the S&A Resource Report – and access this brand-new report – click here.

 

The Growth Stock Wire is a free daily e-letter that provides readers with a pre-market briefing on the most profitable opportunities in the global stock, currency, and commodity markets. Written by veteran trader Jeff Clark, and featuring expert guest commentaries, Growth Stock Wire is delivered to your inbox each weekday morning before the markets open.

Customer Service: 1-888-261-2693 – Copyright 2009 Stansberry & Associates Investment Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Growth Stock Wire Archive

© 2005-2015 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Biggest Debt Bomb in History