Platinum, a more rare precious metal than gold, has been lagging behind gold in price for quite some time. I talked about it a few months ago that I believed its price will sooner or later catch up and come back to its historical level that is more expensive than gold. It has happened yet and this is actually the best time to buy platinum for long term if you have a longer investment horizon. Patience is the key.
One may directly invest in platinum by buying its ETFs, e.g. PPLT or PALL for its alternative, palladium. But I personally like the platinum mining companies better, which is one leverage way to follow the trend. Of course, it is a double edged sword when the company is not performing well that you may get hurt more pronouncedly. SWC is one of the largest mining companies for platinum and palladium. SWC got fire towards the end of last year and early this year, when I was discussing about investing in platinum. It jumped up about 50% or so within a short few months period of time. Clearly people had got too much excited and pushed it way ahead of itself. In the past few months, SWC has given back all and even more. At the currently price around $8-9 or so, I think it is has some great value in it. I’m still a firm believer that platinum will come back to where it should be. If so, I really think SWC will be doing quite well along this trend. I cannot say and no one can be sure if this is its absolute bottom but I like the risk-benefit ratio here from the long-term perspective.
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