By Justin Spittler, editor, Casey Daily Dispatch
“What’s your favorite commodity right now?”
I asked International Speculator editor Dave Forest this question last Wednesday at the Legacy Investment Summit. We were taking in this view of the beach at the time:
Without hesitation, Dave replied “platinum.” He said:
Nobody’s talking about platinum. No one cares about it.
And for good reason. Just look at this 10-year chart of platinum:
You can see that it’s down 61% since its high in 2008.
Now, I realize that sounds like a reason to avoid platinum. But you should understand something about Dave.
• Dave is a contrarian…
Like Doug Casey, he likes to buy assets other investors want nothing to do with. This allows him to pick up world-class assets for dirt cheap… and ride them to huge gains once sentiment changes.
And platinum is easily one of the most hated assets on the planet right now… though it may not be for much longer.
As you’re about to see, platinum isn’t just cheap—it’s irrationally cheap. At this point, it offers massive upside with little downside risk.
In a minute, I’ll show you how to take advantage of this situation. But first, I should tell you what Dave and I were doing in Bermuda.
• Last week, we attended the first-ever Legacy Investment Summit…
This conference brought the brightest minds in our business together.
Doug Casey, Bill Bonner, and Mark Ford were in the building. I also heard eye-opening speeches from Crisis Investing chief analyst Nick Giambruno, Palm Beach Confidential editor Teeka Tiwari, and Delta Report editor Jeff Clark.
But some of the best insights I walked away with came from outside of the conference hall… when I was enjoying drinks and dinner with some of our industry’s top gurus. That’s when Dave and I got on the topic of platinum.
I’m going to let you in on that conversation in today’s Dispatch. I’ll tell you why Dave’s so bullish on platinum… And I’ll show you the best way to profit from higher platinum prices.
Here’s why it pays to listen to Dave.
• He is our in-house geologist…
He has spent his entire 20-year investing career searching for new discoveries and breakthroughs. He has also founded his own mineral exploration and development companies, raising over $80 million in equity financing from some of the most well-known resource investors in North America.
Dave credits his success in the resource space to experience, his connections, and technical background. But part of his edge is a time-tested method for identifying commodities with the most upside. Right now, that industry-tested method is showing that platinum is a screaming buy.
Just look at the chart that Dave shared during his presentation in Bermuda:
As you can see, the price of platinum is so low that half of the industry is unprofitable. And that’s exactly what Dave looks for.
I know that’s counterintuitive. After all, most investors like to invest in businesses that are making money hand over fist… not ones that are bleeding cash.
But situations like this are a recipe for much higher prices… and ultimately fat profits.
Think about it. If the price of platinum doesn’t rise, miners will be forced to shut down mines. That will cause the supply of platinum to contract, which would cause prices to rise, assuming demand doesn’t decrease.
But that’s not the only reason to be bullish on platinum.
• The global supply of platinum is also incredibly insecure…
About 70% of the world’s platinum comes from South Africa. That’s a problem, as Dave explained to me in Bermuda:
South Africa produces about 70% of global supply—and that country is seeing increasing government take from mining operations as taxes rise. Add that to the fact that South Africa’s mines are generally old and exceptionally deep (up to a few kilometers in some cases), and mining costs here are on the rise—at a time when platinum prices are at a historic low.
That means South Africa’s platinum miners are having trouble raising investment while labor unions, the government, etc. are demanding more money. It’s all a powder keg when it comes to a potential massive supply disruption for one of the world’s key metals.
• The stage is set for much higher platinum prices…
So consider betting on higher platinum prices if you haven’t yet.
You can easily do this by buying the Aberdeen Standard Physical Platinum Shares ETF (PPLT). This fund tracks the price of platinum.
For even more upside, consider speculating on platinum miners. These companies are leveraged to the price of platinum. In other words, platinum doesn’t have to rise much for their shares to skyrocket.
Just understand that this is a speculation. Mining stocks are volatile. As always, keep your position sizes small… and never bet more money than you can afford to lose.
New York, New York
October 24, 2018
P.S. Platinum isn’t the only investment opportunity that Dave’s excited about today. He recently released an important video that reveals one of the biggest trends you’re probably not hearing about today.
In short, America is switching to a new, higher grade of oil. It’s called “Brandt Oil”—and it can power everything we use—cars, homes, buildings, and machinery.
Less than two gallons of “Brandt Oil” contains enough raw energy to power your house for nine years. Heck, a single barrel could unleash more than enough energy to power 15,000 homes for a decade. But that’s not even this super fuel’s most amazing feat. Dave explains…
Feedback continues to roll in for Doug Casey’s essay on the recent corruptions of the English language…
Not necessarily misused as both gallons and barrels of oil exist. What’s disingenuous is when reporting/writing about oil, is that it’s priced, bought, and sold in barrels, but if spilled, gallons are spilled.
Hi Doug, enjoyed your piece on fake language; it’s a beef of mine since forever.
Thanks, Doug. This is a very interesting article. I am glad you wrote it because some people around me said I am too picky with words, because I like to be precise. Even if English is not my first language. Many other words are misused and would like to add some, like: Today a lot of people call a “0” (zero), which is a number, an “O,” which is a letter. And I give you a true story. I was ordering something online and gave my card number for the payment. The women said my card was not working. We tried another time and she said the same thing. I ask this lady to read me the number back. She did, and said O for zero. I said no lady, it’s not an O, it’s a zero. She said, “oh my god, I put an O.”
Another one is to interchange “brain” and “mind.” First, it’s not the same word. Second, it’s not the same thing. You can hold a brain in your hand. The mind is pictures with emotions, and you can’t have one in your hand. And it’s more powerful than the brain.
Another phrase is “protecting our country.” That’s more a concept than just a phrase. It justifies for many that it’s OK to take a weapon, attack other countries, kill people, and steal their goods.
As always, if you have any questions or suggestions for the Dispatch, send them to us at [email protected].
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