Platinum: This Precious Metal ETF Is A Great Buy At These Levels (PPLT, GLD, SLV, PALL, IAU)

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December 18, 2011 11:34pm NYSE:GLD NYSE:IAU

Kevin McElroy: Yesterday, I told you I would buy some gold in the near future. That might be in a week or a month – I’m not sure. It depends on my year-end bonus.

But right now, I’ve already shot all of my currently available capital at another precious metal investment, and of course, it’s fallen even lower from my initial buy price.

I’m talking about platinum.

Now, I should clarify: I don’t own physical platinum. I do own physical gold and silver – but that’s because gold and silver are highly recognized among the general public.

Platinum is not generally recognized by anyone outside of the specialized industries that utilize it.

And though platinum is much, much rarer than either gold (NYSEARCA:IAU) or silver (NYSEARCA:SLV), it’s currently cheaper than gold.

It’s a rare occurrence. And since I believe that gold prices are likely to rise in the future, I’ve placed a significant amount of my available investment capital into a platinum ETF, the ETFS Physical Platinum Shares Fund (NYSEARCA:PPLT).

ETFS Physical Platinum Shares Fund (NYSE: PPLT)

For some context, platinum has been cheaper than gold only a handful of times over the last 20 years – and if you bought platinum every one of those times, you would have seen an average gain of 61.5% in the following two year period.

platinum has been cheaper than gold

You might remember seeing this chart, as I wrote about platinum in early November of this year.

I was “lucky” enough to buy shares of PPLT for $155. But the price has since fallen to $140.78 (as of this writing).

And even with gold’s somewhat large correction over the past week or so, platinum is an even better deal than it was when I bought shares last month.

I’m not worried, though I’m down almost 10% on this trade so far. I’m confident that I’ll be back in the black sooner or later.

I don’t mind being a little early in this trade. Almost every time I buy more gold (NYSEARCA:GLD) or silver (NYSEARCA:SLV), the price immediately drops. I don’t know if I just have poor timing, bad luck or some mix – but I’m always vindicated in a month or two as prices resume their uptrend.

And nothing on the investment horizon tells me that the bull market in commodities or precious metals is even close to coming to an end. Governments around the globe are now even more likely to inflate their way out of their debts. It’s the only real move they have left – and they’ve shown no inclination to do anything differently.

Could platinum fall further from here? Absolutely. But I hope you’ll consider picking up some shares of PPLT soon – not because I’m a current shareholder – but because I sincerely believe this ETF is one of the best opportunities in the entire market to buy today.

Written By Kevin McElroy From Wyatt Research

Kevin McElroy is a top rated commodity researcher and analyst specialist at Wyatt Investment Research, with a targeted focus on short and long term investment opportunities.  He has worked in the investment publishing field for over three years alongside some of the world’s leading commodity traders and analysts.  He takes the complex futures and options trading strategies from the floors of the Nymex and the CBOT, uniquely combines them with economic trends and positions his recommendations in a way that any investor, from a straight long-term buy and hold investor to a sophisticated day trader can easily understand, implement, and profit.

Kevin constantly finds unique ways to profit from the “real stuff” like oil, gold, iron, corn – the energy, money, goods and food that the world constantly needs more of.  Kevin is the daily editor to Resource Prospector and a contributor to Energy World Profits and Global Commodity Investing.

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