Silver almost hits 16.75 on Etoro and people are freaking out

People are raging on etoro today after the price of silver dropped significantly. Some claim however that the price dropped further on etoro than on other platforms.

While its ok to freak out about the a platform messing with the price, you have to make sure that this is the case.

On Plus500 the price of silver did the same

Also on Oanda:

So here you can see, relax. The price of silver is indeed doing strange things today.

This could be due to the dollar that might recover a bit after hitting the critical level of 90 yesterday on the dollar index.

To blame etoro without checking the facts is a bit stupid. Maybe dont trade with x400 leverage. This will be way better for your stress levels.

 

 

The rand and platinum

Yesterday I said why I think platinum is a good buy at $900 an ounce. I still think that is the case but there is one thing one has to consider when investing in platinum. The rand.

The rand has a big effect on platinum because South Africa is one of the major platinum miners in the world, if not the biggest platinum “producer”. I dont actually have the statistics to prove it on paper, although i’m sure this is the case.

So how does the rand effect platinum?

The mine “producers’ pay their employers in rand while they sell the platinum in dollars (as far as i know). So when they sell their platinum for dollars and the rand is strong that means that one dollar would not pay the same amount of people working for the mining companies as it would when the dollar is worth more against the rand.

So how does this work then? I mean if the rand is strong the price of platinum goes up because it costs more dollars. This also means that when the price goes up it levels the grounds for the mining companies to pay the people working for them.

Now, if the dollar strengthens against the rand which is pretty much the same thing but if the rand falls to a really poor level against the dollar I would say platinum would then be cheaper. I think the theory is obviously people buy in dollars but now they the dolloar they make is less and that also means they have to pay their employees with a dollar that means less.

Producers however can also do something. When the rand gets too strong they can limit production. Thus, i guess, platinum prices go up, usual demand with less of the actual product. Demand drives prices up and thus the story goes.

This is not trading advice, this is me thinking about the price of platinum and what the rand does to it.

Platinum price – Monday 8 January 2018

I’m going to do a daily platinum price prediction and see if i’m correct or wrong at the end of the day.

Today I think the dollar is oversold, the rand is also oversold ( I mean the rand is too strong against the dollar currently).

Platinum is heading for $970, actually that is where its at but this is where I think it will fall.

The resistance at $970 is pretty clear, although i dont really know how strong it is.

I got a couple of nice trades on platinum a few days ago.

I’m actually hoping that it drops to around 920 where I think its a good buy.

Please note. This is not trading advice, only my opinion.

 

Platinum – How much does it cost, when should you buy?

Ever wondered what the price of platinum costs to extract from the ground?

After searching long and hard I found the answer. The answer is about $900 per ounce. That is how much it costs to extract Platinum.

So, not being clued up as Warren buffet or those people my estimated guess would be Platinum is always a safe buy at $900.

If platinum drops to less than $900 then things become complicated because the companies that extract the ore start having issues.

Such was the case with Lonmin who had to sold their company to Sibanye-Stillwater. Actually was announced in December that Lonmin might have to sell their company Sibanye-Stillwater. I dont actually know if that is what happened yet.

When things like that happen though the price of Platinum shoots up because when the companies that extract the ore become less and the price of platinum stays at around $900 too long giving no profits for the extractors of the ore it means that either there will be less extraction of ore or the companies that obviously extract the ore goes bankrupt.

I’m no rocket scientist but I think i can repeat the theory that Platinum is safe to buy at $900.

 

RIP SEO and welcome to the trading world, financial markets and other boring things

So. I worked for a year in Cape Town for a online marketing company and I guess that is where my interest and entire career (sort of) in SEO got entirely abandoned.

That was back in 2013 or something and since then i’ve been learning how to trade the financial markets. Being broke and all i did not really have the means to actually trade but recently I got a bit of a break and started trading with actual money. Also have this aspergers thing which stops me from doing some real jobs and all.

So, now i’m going to attempt to become rich and document it on this site.

Follow the category called trading. I suppose.

The Rand makes the most traded currrencies in the world list

The rand is one of the most traded forex currencies in the world. Surprisingly it ranks number 18 in the most traded currencies worldwide. Forex trading is a multi trillion dollar industry.

 

# Currency Country Share of trade (%)
1 US Dollar USA 87.0
2 Euro Europe 33.4
3 Yen Japan 23.0
4 British Pound Great Britain 11.8
5 Aus Dollar Australia 8.6
6 Franc Switzerland 5.2
7 Canadian Dollar Canada 4.6
8 Mexican Peso Mexico 2.5
9 Yuan China 2.2
10 NZ Dollar New Zealand 2.0
11 Krona Sweden 1.8
12 Rouble Russia 1.6
13 HK Dollar Hong Kong 1.4
14 Krone Norway 1.4
15 Singapore Dollar Singapore 1.4
16 Lira Turkey 1.3
17 Won Korea 1.2
18 Rand South Africa 1.1
19 Real Brazil 1.1
20 Rupee India 1.0
Others 6.4