Tom Cloud: Buy Platinum Bullion Now

March 12, 2013

FTMDaily.com’s Chief Precious Metals Advisor, Tom Cloud, has issued a buy signal on platinum today. He thinks it’s time to buy platinum bullion now. Tom sent the following information out to his subscriber list by email earlier today.


 
As of March 12, 2013 at 4:30 p.m. EDT, the spot price for platinum bullion is $1595.

Facts About Platinum

  • Platinum is 30-40 x more rare than gold.
  • All the platinum ever mined would fit in an average-sized living room.
  • World platinum production is around six million ounces per year. This is only 7-8% of the production of gold.
  • Around 75% of all platinum production comes from South Africa. The country continues to have labor strikes and power outages that cause cutback in supply. I expect this to continue.
  • Platinum’s value has averaged nearly twice the price of gold over the last 22 years. This pattern has broken down and the two metals are currently the same. As late as June 2008, the platinum price was double the price of gold.
  • Platinum was the top-performing metal in price appreciation in 2012. It outperformed gold, silver and palladium.

Considerations – Pro and Con:

Platinum’s price is very dependent on growing economies. While platinum has many uses, it is still primarily used in the catalytic converter. Therefore, platinum profits when automobile demand is increasing. With China and India’s middle class expanding, many experts are expecting a strong increase in car sales over the next 5-10 years. After all, 40% of the world’s population lives in China and India. Inversely, if we enter a worldwide recession or depression, platinum prices will suffer. But with the QE increases in Europe and in the U.S. over the past few weeks, it seems that the economy is benefiting from a lot of money created out of thin air. This will help all metals.

We feel that platinum has a strong technical support at $1565 per ounce and should not go lower.

The U.S. dollar is currently at 82.50, and we feel that once it tops out around 83.50 it will drop. That drop could start by the end of this month. That would be positive for all metals.

Allocation

Platinum should not make up over 5-15% of your precious metals portfolio.

Three Current Ways to Buy Platinum:

  • The 10 oz. platinum bar (Comex brand)… 3.75 % over spot
  • The 1 oz. platinum bar (Comex brand)… 4.75% over spot
  • The 1 oz. platinum Canadian Maple Leaf… 6% over spot

Where Can I Buy Platinum?

For questions or orders I can be reached at 800-247-2812.

Sincerely,
Tom Cloud
National Numismatic Associates


 

 

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