Breaking It Down: Let's Have a Conversation About Platinum

Welcome to 'Breaking It Down,' where we embark on an enlightening journey into the world of futures, commodities, bonds, equities and more! In this edition, we shift our spotlight to platinum.

1. Diversification: Precious metals like platinum can serve as a hedge against economic instability and currency fluctuations. Adding platinum to your investment portfolio can provide diversification, reducing overall risk exposure.

2. Industrial Demand: Platinum has a wide range of industrial applications, including catalytic converters in automobiles, electronics, and jewelry. Its industrial demand can contribute to its value, especially during periods of economic growth.

3. Supply Constraints: Platinum production is concentrated in a few countries, which can lead to supply disruptions due to geopolitical issues, labor strikes, or other factors. Limited supply combined with steady demand can potentially drive up prices.

4. Historical Value: Platinum has historical significance as a precious metal and has been used for coinage and jewelry for centuries. Its rarity and association with luxury can contribute to its long-term value.

5. Market Speculation: Some investors buy precious metals like platinum as a speculative investment, aiming to profit from price fluctuations in the market.

6. Geopolitical Uncertainty: During times of geopolitical tension or economic uncertainty, investors often turn to precious metals as a safe haven investment to preserve wealth.

7. Inflation Protection: Precious metals are often considered a store of value that can help protect against the erosion of purchasing power caused by inflation.

• Exporters:

  1. South Africa: South Africa has historically been the world's largest producer and exporter of platinum. The Bushveld Igneous Complex in South Africa is one of the largest sources of platinum in the world.

  2. Russia: Russia is another major producer and exporter of platinum. The Norilsk-Talnakh region in Russia contains substantial platinum reserves.

  3. Zimbabwe: Zimbabwe is known for its platinum group metal deposits, and it has also been a significant exporter of platinum.

  4. Canada: Canada has platinum production primarily from the Sudbury Basin in Ontario.

  5. United States: The United States also produces and exports platinum, with notable deposits found in Montana and Alaska.

  6. Zimbabwe: Zimbabwe has been a notable exporter of platinum, particularly from the Great Dyke region.

• Importers

  1. China: China is a major importer of platinum due to its growing industrial sector and its use in various applications, including automotive catalysts and electronics manufacturing.

  2. United States: The U.S. is a significant importer of platinum, mainly for industrial applications and as a component in catalytic converters for vehicles.

  3. Japan: Japan has a strong demand for platinum for use in electronics, jewelry, and industrial processes.

  4. Germany: Germany is an industrial powerhouse and a substantial importer of platinum for its manufacturing needs, including the automotive industry.

  5. United Kingdom: The UK is another significant importer of platinum, driven by its industrial and technological sectors.

  6. South Korea: South Korea's industrial and electronics sectors contribute to its demand for platinum imports.

  7. India: India's growing economy and industrial activities have led to an increased demand for platinum in various applications.

  8. Italy: Italy, with its strong manufacturing base, is also a noteworthy importer of platinum.

  9. Switzerland: Switzerland's role in the precious metals industry includes importing and re-exporting platinum for various purposes.

  10. Taiwan: Taiwan's electronics and technology sectors contribute to its demand for platinum imports

• COT data

Funds are net short. Commercials are building up on long positions. The ROC of these actions are bullish. This is all screaming that the price will go higher soon.