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Frank Petricca

Frank Petricca is writer of “Petricca’s Pick” focusing on a Long Term approach for commodity traders that have an interest in Long term accumulation. Frank has worldwide recognition spurring innovation that points to communicating a different way to approach ones investment portfolio using commodity instruments. Contact Frank at 312-690-7763.

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Petricca’s Pick 08/29/2023

By On August 29, 2023 - 8:56 AM · In Market Commentaries, Petricca’s Pick

Today’s Long Term pick is Platinum futures.

Platinum futures are in fact within my lower 25% parameter (Please call me personally for free Long term charts) where fundamental considerations are also friendly.

PLATINUM FACING BIG DEFICIT ON RISING DEMAND AND CONSTRAINED SUPPLY.

  • The World Platinum Investment Council (WPIC) is now calling for a 2023 Platinum deficit of 938,000 ounces, up a whopping 77 percent from its previous projection.
  • The WPIC said that demand for the metal is surging, up 28 percent year-on-year as the two big drivers of that increase are the automotive sector and industrial space.
  • Mine supply, the WPIC anticipates will decrease in 2023, coming in at 5.51 million ounces compared to 5.57 million ounces. That’s a 1 percent decline year-on-year, a 6 percent decline below the average annual production since 2013.

We should also be cognizant that Platinum in not only used in jewelry but also car production that account for 32 percent of overall demand.

Car makers have bought 12 percent more Platinum this year than last year and are expected to increase their requirements to another 14 percent next year.

It’s important to understand that petrol cars still make up the vast majority of the new cars coming onto the roads, car makers are increasing the Platinum loadings per vehicle in order to meet stricter environmental restrictions.

 

Very simply –

Platinum futures could be a valuable Long Term position for your investment portfolio.

While I can’t make specific price recommendations due to NFA regulation I can tell you that major support for October Platinum is $9.00/$9.10.

My Long term objective for Platinum futures is the upper 25% of the Long Term trading range $1955.00/$2000.00.

In the mean time –

Have a great year trading…

Questions? Comments? Please call.

 

Frank Petricca

312-690-7763

Questions? Ask Frank Petricca today at 312-690-7763.        
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