With gold breaking the $1,000 barrier, silver riding at a ten-year high and precious metals up across the board, the question has to be asked – is it now time to sell platinum?
Between 1992 and 1999, platinum languished around the 0 per ounce mark but with the advent of the new millennium, platinum commenced its inexorable rise, initially due to demand in the electronics sector we all wanted to get in on the internet bubble which in turn fuelled PC and laptop demand, and as that bubble burst in 2001, so did the price of platinum. Economic performance was looking scary and from the 0 level in the beginning of 2001, platinum peaked at almost ,200 in 2008 but fell back to 0 by the end of the year – after Obama’s election and the 0 billion stimulus plan from the US alone was promised.
This directly led to the huge drop in platinum prices seen in the opening days of 2009 – such a capital injection from the US taxpayer was almost unprecedented and more than this, taxpayers around the world in developed countries were finding similarly large amounts of taxpayer cash was being pumped into the global financial system to keep the global economy afloat. He initial reaction of metal speculators, particularly those looking at platinum and precious metals as a safe haven in the very harsh economy, suddenly saw some light at the end of the tunnel – demand for platinum dropped and dropped like the proverbial rock.
Since this platinum crash, the spot price has steadily recovered to where it is now (September 2009) trading at around the $1,250 mark – a far cry from the dizzying heights of $2,200 but nevertheless a remarkable recovery from the low of $800.
The burning issue is whether the price is going to recover further – and that really depends on your view as to whether the economy is going to turn the corner and recovery commences or not. It will depend on stock and bond market peformance – if they recover, the professional investor will drop his precious metal holdings and liquidate to invest in order to take advantage of the market recovery. A close eye needs to be kept on earnings and profit performances and especially whether they are coming at the level of, or better than analyst expectations.
A good guide is the hedge fund market – where many have laid the blame for the current economic malaise. For the year to date, the KDY-index has returned in excess of 17% from the basket of hedge funds it tracks – that’s good news for those looking for super-bonuses and for those looking for recovery.
It is very bad news for those looking for future platinum value increases and signals that the time to sell has definitely arrived – for further proof, look at how the value of platinum has hit a plateau and is rebounding off the ,200 price ceiling – speculators and traders simply don’t know which way they should be going and are waiting and watching to see what will happen next – the current round of earnings results in Wall Street are primarily positive.
Platinum is not going higher – sell.
Related posts:
- Palladium Market Movement Begs the Question – Is it Time to Sell?
- Jewelry Diamonds – Tips on How to Choose an Engagement Ring
- Sell Gold Jewelry – The Reason Why This Is The Best Time To Sell Your Gold Jewelry
- Why Now Is the Time to Sell Your Gold
- Who's Buying Gold These Days?
- What Is Right For You? - White Gold Vs. Platinum
- Gold, Silver, and Platinum, Oh My!
Filed under: jewelry