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.
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.