Actual Price: Platinum, Gold, and Silver


For the past few weeks, markets have been heavily focused on the location of precious metals. Of course, this is when an asset reaches a new record high or doubles in value in a very short period of time. Recently, this has been the case in gold markets and silver markets. However, it is important for investors to remember that many analysts argued that precious metals assets were essentially the market’s stock of laughter shortly before.

Source: Authoring with TradingView

For an extended period of time, gold markets traded in a sideways range, surrounded by highs of $ 1,480 and lows of $ 1,050. The weight of these trends was less than the SPDR Gold Trust (NYSEARCA: GLD) And considering precious metals assets as part of a broader portfolio investment strategy brought a heavy dose of skepticism among investors.

If we can remember this period back then, sideways trading activity lasted over six years as most traders in the market failed to see the increasing number of factors supporting the outlook for very high valuations in precious metals. In addition to global trade tensions and a generalized lack of viable safe-haven options, rising levels of public debt have made it very difficult for currencies to show lasting strength globally.

Compared to traditional reserves of precious metals, investors should understand that fiat currencies are far more transitory in nature. The recent decline in the greenback has been seen as an adjunct to equity markets in Asia, and is just one more example showing that the impact of current market trends will undoubtedly have a long-term impact on the global economy.

Source: Authoring with TradingView

On March 25, we published an article describing the recent fall in silver as “an opportunity of a lifetime” for precious metals investors. Certainly, this could be a serious risk for making such monumental forecasts and we certainly received criticisms about the possibility that the silver market could expand like this.

In the commentary, we discussed some of the reasons why the silver market was stalling rapid progress: “In the last month, the Eicher Silver Trust (NYSEARCA: SLV) There has been a fall of around 21% and many metal traders are wondering why the ETF has not been able to support any safe haven from investors. These are fair questions, given the strong history of silver as a fair asset. But this recent activity is highly uncertain (to say the least) and has created a duality in investor sentiment that is simply sustainable. “

We conclude the comment by saying that “a series of unprecedented macroeconomic events may have created one of the most important business opportunities on record – a ‘perfect opportunity of a lifetime’ for SLV keepers.” Of course, we now know that silver was indeed on the verge of reaching historic price moves and market valuations in base silver assets are already trading at more than 125% from their March 2020 lows.

Source: Authoring with TradingView

However, I am also on the lookout for uninterrupted trades in the platinum market as there are assets in the sector that have been missing during this recent period of being directed to all precious metals. In this category, Aberdeen Standard Physical Platinum Share (NYSEARCA: PPLT) Works as a high-liquidity instrument that can be used when investors are looking to convey a faster outlook and achieve additional performance in these markets.

The Aberdeen Standard Physical Platinum Share is a grant trust, which means that the fund is in contact with the physical platinum stored in the Vaults (which are located in London, UK and Zurich, Switzerland). As a major player in the precious metals fund category, trading activity in PPLT has already begun to experience significant changes suggesting increased potential for expanded bull moves.

Source: ETFdb

If we look at the Aberdeen Standard Physical Platinum ETF in late 2019 and early 2020 in terms of its performance, it is easy to see that the market would have viewed Platinum’s assets with some degree of skepticism.

However, these trends have changed rapidly since the end of May 2020 and the total net inflows recorded last year in the Aberdeen Standard Physical Platinum ETF reached $ 238.09 million. This is a true upside and represents a significant deviation from the fund’s long-term average. As a result, the Aberdeen Standard Physical Platinum ETF is now placed in a strong position to post further rallies in late 2020.

Source: Authoring with TradingView

For those interested in trading PPLT, we can outline some specific support and resistance areas that are likely to influence further trending activity. At this stage, the fund’s initial support base can be found just above the $ 80 handle (near 81.45). This region marks an area of ​​short-term consolidation before the most recent breakdown.

However, if this support area is broken, the price trend in PPLT could see more selling pressure as technical analysts may begin to target prior lows near 54.90 when they start selling positions. If our mid-level support zone holds, our next price target remains at 97.15, but we will need to see a period of corrective consolidation before reaching this price zone.

Overall, precious metals are showing strength as investors are looking for a safe and secure store of value that can be trusted over a long-term time horizon. At this stage, the gold and silver markets have received the most positive attention but there are still reasons to believe that platinum assets have the potential to grow in this highly uncertain market environment.

Thank you for reading.

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Disclosure: I / We do not have a position in any of the stocks mentioned, and there are no plans to initiate any of the positions within the next 72 hours. I wrote this article myself, and it expresses my own opinion. I am not getting compensation for this (other than Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.