Tuesday, January 11, 2011

Platinum on the Verge

Platinum had two flash crashes tonight which means a big monie player forced the issue.  I imagine it was the Asian governments.  Someone wanted a lower price than they thought they could get later, and they pulled a flash crash.  Why should the US exchanges have all the fun manipulating the markets?  So once again the impervious nature of the market makers has the markets up in smoke.  Paper burns, and the furnice is hot!

The last time precious metals were tested like this was when the Dollar and Euro were finished with their last debt crisis.  That was only last spring, it does not feel like too long ago!  When this next phase hits home both America and Eurpoe will be toast and marmalade.  The Muni Meltdown plus Fraudclosuregate will burn the US, and Europe will lose Spain to its own crisis, following Port de Gaul, Ireland, Greece. 

The jump off point for silver before it broke $21 with authority came from below the resistance with a massive build up of support, just as happened with platinum.  Tonight platinum looks ready and primed.  The break from $1800 to $2200 may happen soon.

What will it do to the markets to have platinum finally catch up to the other metals?  Platinum is still below its all time high of $2200.  Its recent high is touching $1800.  It will rip through that price range like a bat out of hell.  This move will be exactly like Silver this late summer/early fall.  What will happen with the other currencies when platinum goes to test its all time nominal high?

Because the Trinity trade together, and they do so because they all share equal characteristics as monie, silver and gold are likely to climb on the back of platinum.  This will take some pressure off of oil, but at the same time oil will rise for the same reasons the Trinity rises.  Oil is a highly valuable commodity that is or is almost on its downside of production.  These worldly resources are high in demand.  The price shift is on.

Update:  The Trinity is moving up in lockstep, I repeat....this is extremely bullish.  It does not happen often, in Asia or otherwise.

1 comment:

  1. Agreed, been accumulating Pt/Au while everyone was distracted with Ag,Pd. Taking turns biting the sleeper metals...