With palladium prices exploding the last few years while staples like gold and silver continue to see interest in times of market volatility, platinum may not have the attention of investors. However, before traders want to take on platinum, patience will be key in the current market landscape.
“Platinum futures in the January contract settled last Friday in New York at $900 an ounce currently trading at 892 down about $8 for the trading week as prices are stuck in a 3 week consolidation pattern,” said Michael Seery of Seery Futures. “Platinum prices are trading below their 20 day but still above their 100 day moving average as the trend is mixed, however historically speaking prices look very cheap in my opinion especially compared to gold as I will be looking at a bullish position if prices hit a 4 week high as I think the downside is very limited.”
Traders know that in order to churn a profit, volume is necessary to swing prices—hopefully in their favor. However, there’s not a lot of volatility in prices to be had at the moment.
“Volatility at the current time is relatively low as prices remain mixed to choppy so keep a close eye on this market as we could possibly be involved in the coming days ahead,” Seery added. “Platinum prices have sold off about 10% from their August highs as I still think we will crack that $1,000 level once again, but be patient as trading in a consolidation is very difficult to be successful in my opinion as you want to trade with the trend so look at other markets that are breaking out at the current time as I have multiple bullish recommendations.”
As opposed to actually purchasing physical platinum, investors can take advantage of platinum through exchange-traded funds (ETFs) like the Aberdeen Standard Platinum Shares ETF (NYSEArca: PPLT). PPLT seeks to reflect the performance of the price of physical platinum, less the expenses of the Trust’s operations and is designed for investors who want a cost-effective and convenient way to invest in platinum with minimal credit risk.
- Physically-Backed: Cost-effective and convenient access to physical platinum.
- Transparency: The metal is held in allocated bars and a bar list is posted daily on aberdeenstandardetfs.us
- Pricing: The metal is priced off the LPPM’s specifications for Good Delivery, which is an internationally recognized and transparent benchmark for pricing physical platinum.
- Vault Location: Metal is held in London, United Kingdom at a secured vault of J.P. Morgan Chase Bank, N.A.
- Vault Inspection: Inspectorate International, a leading physical commodity auditor, inspects the vault twice per year (including once at random).
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