Three reasons why platinum is a screaming buy

From Justin Spittler, Editor, Casey Daily Dispatch:

“This is the most extreme discount I’ve ever seen.”

Steve Sjuggerud said this yesterday at the Sprott Natural Resource Symposium in Vancouver.

He was talking about platinum.

Platinum, as you may know, is an industrial metal. It’s also a precious metal like gold or silver.

And yet, most investors don’t own any platinum. They don’t see the point.

But these people could be missing out on the opportunity of a lifetime.

You see, something unusual is happening in the platinum market right now. This setup isn’t just rare. It’s also a massive moneymaking opportunity.

I’ll explain why in a minute. But you should first know why it pays to listen to Steve.

Steve is one of the best analysts in our industry…

He has a doctorate in finance. He’s worked as a stockbroker. And he’s been featured in Bloomberg, Fox Business, The Wall Street Journal, and Forbes.

Steve didn’t get to this level by accident. He got here because he goes the extra mile.

You see, Steve’s been to hundreds of investing conferences during his career. He’s also traveled across the world to uncover opportunities the average investor never hears about.

And yesterday, Steve told a room full of millionaire investors that one of the biggest opportunities right now is in platinum.

In fact, it has everything he looks for in a speculation. It’s cheap. It’s hated. And it’s in an uptrend.

So, let’s take a closer look at this opportunity…

Platinum has never been cheaper relative to gold…

You can see what I mean below.

This chart, which Steve shared during his presentation yesterday, compares the price of platinum and gold going back to the 1980s.

You can see that platinum is almost always more expensive than gold.

And it should be, according to Steve. After all, it’s rarer than gold. And it’s harder to get out of the ground.

When platinum does trade at a discount, it doesn’t last long. That’s what makes today so strange.

Right now, platinum trades for about $300 less than gold. This is the biggest discount it’s ever traded at relative to gold.

But that’s not all Steve likes about platinum.

Platinum has also NEVER been more hated…

You might know this if you’ve been following the Commitments of Traders (COT) report for platinum.

This weekly report shows how future traders are betting their money.

Most of the time, it doesn’t tell us much. But when futures traders all agree, it can be a powerful contrarian indicator.

You see, Steve says that an asset is bound to fall when everyone bets on it. Just look at what happened to gold last year.

Its price surged 27% from January to July. Traders made massive bets that gold would keep rising. The sentiment became extremely bullish.

So, Steve sold all his gold.

It was a bold move. But it paid off. The average gold stocks fell 40% over the next five months.

Today, the complete opposite is happening in the platinum market…

Just look at the chart that Steve shared yesterday.

You can see that the commitment of traders (the blue line) is at a record. This means traders have never been more bearish on platinum. They’ve completely given up on it.

And that’s exactly why Steve likes platinum. But here’s the thing.

Steve won’t recommend an asset just because it’s cheap and hated. It also must be in an uptrend… and that’s starting to happen, too.

Platinum is showing signs of life…

It’s up 4% over the last three weeks.

That’s not a huge move. But Steve thinks it could be the start of something much bigger.

You can see why below. This chart shows the performance of platinum over the past year.

Two things jump off the screen here. Number one, platinum has support at around $900.

It’s tested this key level several times since last December. Every time it’s touched it, it’s bounced higher.

Not only that, platinum has “broken out” of its downtrend. This is also great news.

You see, assets that break out often keep rising. In other words, platinum appears to have just begun an uptrend.

Like I said, platinum has everything Steve looks for in a speculation…

I encourage you to buy some platinum if you haven’t already.

You can see the specific way Steve is recommending his readers play this by signing up for his True Wealth advisory. With a subscription, you’ll also learn about the two other big ideas that Steve shared at yesterday’s conference.

But first, I recommend you check out his brand-new video presentation that uncovers a massive online breakthrough… one that will make early investors rich. To watch this video—and learn more about a subscription to True Wealth click here.

Here’s another key takeaway from the conference…

The price of uranium must rise.

Right now, uranium trades at around $20/lb. That’s a 12-year low.

More importantly, it’s well below the cost of production. In fact, most producers need $60 uranium to make money.

That’s triple the current price. This means the price can only go up from here.

But that’s not the only reason to be excited about uranium. Right now, the metal is experiencing the best demand growth in 25 years… but supply is falling short.

In other words, producers won’t be able to supply enough uranium to satisfy the coming surge in demand. That’s a recipe for higher uranium prices… and great news for uranium stocks.

You can learn more about this opportunity (including how to take advantage of it) by reading the July 18 Dispatch.

Regards,

Justin Spittler

Crux note: You can now read all of Casey Research’s daily e-letters for FREE, all in one place. For their latest top ideas click here.

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