It always seems odd when the dollar trades weaker on the markets when the dollar does too. I would think people would take the opportunity to buy when the price was low while the dollar still has its value. Apparently someone is content to sell, or lease, gold at these times. Like Gordan Brown before, some people do get caught selling low.
Even though the Trinity has fallen for the first time in a long time in Asia, platinum is still testing its all important support level of $1800. The reason this level is important is because if platinum stays here, then its recent gains are kept. If it can move up from here, the gains will be realized and then some. Then if platinum moves up, silver and gold are sure to follow. This move could crush the dollar further, and oil could spike. Look for platinum to lead the charge.
The reason for platinum's recent run has to do directly with supply and demand. It is decreasing in supply, as production peaked in '09. Demand is also increasing due to industrial use in cars and medical equipment. Platinum also fits the definition of monie perfectly, and it is being sought as a store of wealth in bullion form as gold and silver is.
No comments:
Post a Comment