A person who knows a lot about metals thinks that there is one metal called platinum that is not expensive enough. He believes people should buy more of this metal because its price will go up later. Read from source...
- The title of the article is misleading and sensationalized. It does not provide any evidence or data to support the claim that platinum is horribly undervalued.
- The author does not disclose any potential conflicts of interest or financial incentives behind his recommendation of platinum. This creates a lack of credibility and trustworthiness for the readers.
- The author relies heavily on technical analysis, which is a subjective and flawed method of predicting future price movements. Technical analysis does not account for fundamental factors such as supply and demand, economic conditions, geopolitical events, or corporate performance that may affect the value of platinum.
- The author uses vague and ambiguous terms to describe his technical indicators, such as "oversold", "overbought", "resistance", and "support". These terms do not have clear definitions or universal standards, and they can be interpreted in different ways by different analysts. This creates confusion and uncertainty for the readers who may follow his advice.
- The author does not provide any historical context or comparison to previous cycles of platinum prices. He fails to acknowledge that platinum has been in a downtrend since 2008, and that it has experienced multiple corrections and rallies along the way. This gives the impression that he is ignoring or avoiding relevant information that may contradict his bullish thesis.
- The author does not address any potential risks or challenges that may impact platinum's performance in the future. He does not mention any of the factors that may negatively affect demand for platinum, such as environmental concerns, alternative technologies, economic slowdown, or geopolitical tensions. This creates a one-sided and unrealistic view of platinum's prospects.
- The author does not provide any actionable or specific recommendations for the readers who may want to invest in platinum. He does not mention what kind of stocks, ETFs, or physical assets he would suggest, nor what kind of stop-loss or take-profit levels he would use. This leaves the readers with a lot of unanswered questions and uncertainty about how to proceed with their own investments.
Overall, I think this article is poorly written, unscientific, and biased. It does not provide any useful information or insights for the readers who are interested in platinum. Instead, it tries to manipulate them into buying platinum based on emotional appeals and wishful thinking. I would not trust this author or his opinions, and I would advise others to do their own research and due diligence before making any investment decisions.
Based on the article "Expert Shares 'Horribly Undervalued' Metal", I will provide you with some suggestions for how to invest in platinum, as well as the potential benefits and drawbacks of doing so. Here are my top three recommendations:
1. Buy physical platinum bullion: This is a simple and direct way to gain exposure to platinum, as you can purchase coins or bars from various dealers or online platforms. The advantage of this method is that you have direct ownership of the metal and can store it safely in your home or a secure facility. However, the downside is that you may pay higher premiums for the bullion, depending on the supply and demand situation. You also need to consider the storage costs and security risks associated with holding physical platinum.
2. Invest in platinum ETFs: These are exchange-traded funds that track the price of platinum or a basket of platinum miners. Some examples are the Aberdeen Standard Physical Platinum Shares ETF (PPLT) and the ETFS Physical Platinum Shares (PPLT). The advantage of this method is that you can buy and sell the ETFs easily on an exchange, and they offer lower costs than physical bullion. However, the downside is that you do not have direct ownership of the metal, and you may face counterparty risk if the ETF provider defaults or suspends operations. You also need to consider the tracking error and management fees of the ETFs.
3. Invest in platinum mining stocks: These are companies that produce or explore for platinum. Some examples are Anglo American Platinum (AME), Sibanye-Stillwater (SBSW) and Impala Platinum Holdings Limited (IPLEF). The advantage of this method is that you can benefit from the leverage and growth potential of the mining companies, as well as their dividends. However, the downside is that you face company-specific risks, such as operational issues, regulatory changes, labor disputes or market fluctuations. You also need to consider the valuation and quality of the mining stocks, as well as the political and economic stability of the countries where they operate.