This Precious Metal is Crashing — Time to Buy its Jewelry

Platinum lost two-thirds of its value in its last crash in 2008…

Then, it more than doubled in price over the next 18 months.

I tell you this because platinum is crashing again right now…

Platinum has fallen by 18% in the past three months. And on Monday, it fell below $1,200 for the first time in five years…

Platinum traders are now scared. They’re running for the exits. Right now, platinum is as hated by traders as it was at its bottom in 2008 (according to SentimenTrader.com).

[ad#Google Adsense 336×280-IA]Bloomberg news reported [Monday] that “Speculators cut wagers on higher prices by 70 percent, from a record in July, and are now the least bullish this year.”

When traders get this scared, I get interested…

You see, I love a hated asset. In my career, by biggest gains have come from buying what’s hated the most.

The key to buying smart – i.e. the least risky way – is to wait on the uptrend to return.

It might be more glamorous to buy today so you can say you caught the exact bottom. But that is dangerous… That’s too risky to me.

Right now, platinum is in freefall. Remember, platinum lost two-thirds of its value peak-to-trough in 2008. So it can fall farther than you think. I would rather wait for what appears to be a bottom, and the start of an uptrend, before I pile in.

In short, it’s much safer to wait for platinum to bottom, and buy once the uptrend returns.

As a speculator, I will wait.

However, as a husband, with the holiday season around the corner, I think that now is a good time to consider buying platinum jewelry…

Platinum is normally more expensive than gold, as you can see in the chart below. So it’s considered a bit more elite.

But today, you can buy both metals for around $1,200 an ounce. You can buy “platinum level status” at “gold level prices” today. That doesn’t happen often, as you can see in the chart above. As a jewelry buyer, take advantage of it!

For me, as an investor and speculator, I am getting very interested in platinum…

I will monitor it closely for a real buying opportunity… I will be looking for a bottom in price… and a return of the uptrend.

As an investor, we’re not there yet… But as a husband, with the holiday season around the corner, I’m tempted by platinum…

This year, don’t think gold… Think platinum. The upside is potentially bigger, both as an investor, and as a spouse…

Good investing,

Steve

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Source: Daily Wealth