Better than stocks, safer than gold
Today's Financial News - Posted September 30, 2009
If you think gold has been on a good run, check out platinum. Its potential to make you rich is undeniable, no matter what the markets do over the next six months.
By Andrew Snyder, TodaysFinancialNews.com
Baltimore – (TFN): To say the markets are getting nervous is an understatement. Traders are flat out shaking at the knees. With report showing the nation’s housing sector remains weak, manufacturing activity is slowing and consumer sentiment is on the decline, smart investors are cashing in their gains and running back to the realm of safety.
That means assets like gold and Treasury Bills are hot commodities. As I write, the value of an ounce of gold is once again at the critical thousand-dollar mark, proving that investors are moving away from risk-filled equities and diving into tangible value.
But if you think the run in the gold market has been noteworthy, dig a bit deeper through the commodities quotes and check out the action of the ultra-rare metals, like platinum and its cousin palladium.
Whoa, Nelly!
While gold moved ahead by just over 10% in recent months, these two have surged by nearly 40% and over 55%, respectively.
There is a plethora of reasons platinum-group prices have surged over the past six months. One of the chief causes is our good trading partner, China.
With a buck buying less than it used to these days (the dollar is down again today), China is stockpiling every hard asset it can find. Beijing particularly likes platinum and palladium because of their vast industrial uses, increasing its August imports by more than 90% and 60%, respectively.
While some of the added importation can be attributed to economic growth, there is no doubt stockpiling is a major source of demand growth. This is a trend that will continue over the next 12 to 24 months as China’s economy rebounds and America determines its fiscal future.
If you haven’t figure out a way to take advantage of the situation yet, do it now. You still have 16 days.
If you are looking for the simplest way to take advantage of the situation, buy shares of the world’s platinum-group miners. Just yesterday, Hot Stock Confidential posted its latest special report online. In it, you will find out exactly which miner I believe is the best buy out there.
Here’s a hint: Its shares trade for less than buck.
Best small cap around?
If you are as bullish on this situation as I am, you will surely want to put the leverage of options to your advantage. Over at TFN Strategic Trader, that is all we do.
I recently wrote a special report detailing a unique opportunity that allows you to maximize your profit potential as China ramps up its commodity imports.
To read it and get your hands on this invaluable information, simply follow this link.
Finally, take this with you.
As the world’s economy stratifies into one enormous, undistinguishable layer, America’s position as a dominant force will greatly diminish. Recent political action and an emergence of far stronger economies have hurried the process.
Right now is the time to prepare for the change. As I wrote yesterday, China is already making its preparations.
What is stopping you from dedicating at least a small portion of your portfolio to this interesting situation?
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