Platinum weekly special report based On 1.00 Lot Calculation:
PLATINUM USE AND MARKET SHARE:
- Platinum is mostly used in catalytic convertors (circa 40%) by car industry to reduce harmful gas emission, while tightening regulation is forcing auto makers to put more of Platinum into each vehicle, which in turn could keep demand outlook positive. Platinum has also found use in the jewelry sector (circa 32%). Industrial use of Platinum takes up to 21%. Platinum has been also used as an inflation hedge investment (3%) through the years, and as such remains vulnerable to changing global interest rates and global inflation.
- MARKET SHARE (PRODUCERS): South Africa is the largest producer holding 70.0% of the markets, while Russia is the second largest with 12- 13% of the markets. Zimbabwe is third on the list with 8.2% of the global production.
- MARKET SHARE (CONSUMERS): China is the largest Platinum consumer with 28%, while Europe is second in line with 25%. North America (USA) takes up to 20%, while Japan stands at 15%.
ANALYSIS AND EVENTS:
- STRONG INDICATIONS THAT CHINA IS SET TO REOPEN IN THE NEAR FUTURE: According to a report from Goldman Sachs, China has been importing about 2.5m barrels of crude oil per day, a strong indication of reopening likely to occur in the near future. Reopening may have the potential to send platinum prices higher, as China is the largest consumer of platinum on the planet. With car production remaining strong despite lockdowns and economic headwinds, the reopening remains a strong bullish catalyst for the commodity.
- PLATINUM FINDS USE IN EXPANDING ELECTRIC VEHICLE MARKETS (HYDROGEN FUEL CELL ELECTRIC VEHICLES). As the world moves from fossil fuels to zero-carbon energy, Platinum could also rise in demand as it finds a crucial role in transforming hydrogen into electricity with hydrogen fuel cell technology, which is used by the electric vehicle markets to make green car engines.
- WORLD PLATINUM INVESTMENT COUNCIL RELEASED ITS 2023 FOERCAST: World Platinum Investment Council released its 2023 forecast, predicting the platinum's deficit after two years of surpluses. The deficit would be caused by the imbalance between demand growth (19%) and supply growth (only 2%). The surplus forecast for 2022 has been revised downwards by 17%.
- ANALYSIS (COMMERZBANK): The price of platinum, a key catalyst in hydrogen fuel cells, may go on rising. Platinum prices could climb to USD1,150 per ounce. Platinum is used as a catalyst in the production, storage, transportation, and application of hydrogen. Development of the hydrogen energy industry has directly boosted market demand for platinum and platinum-group metals.
Platinum, January 3, 2023
Current Price: 1,100.00
|
Platinum |
Weekly |
|
Trend direction |
|
|
1,300.00 |
|
|
1,230.00 |
|
|
1,170.00 |
|
|
1,030.00 |
|
|
980.00 |
|
|
910.00 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
Platinum |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
20,000.00 |
13,000.00 |
7,000.00 |
-7,000.00 |
-12,000.00 |
-19,000.00 |
|
Profit or loss in €2 |
20,080.32 |
13,052.21 |
7,028.11 |
-7,028.11 |
-12,048.19 |
-19,076.31 |
|
Profit or loss in £2 |
17,590.15 |
11,433.60 |
6,156.55 |
-6,156.55 |
-10,554.09 |
-16,710.64 |
|
Profit or loss in C$2 |
26,580.00 |
17,277.00 |
9,303.00 |
-9,303.00 |
-15,948.00 |
-25,251.00 |
1. 1.00 lot is equivalent of 100 units
2. Calculations for exchange rate used as of 9:45 (GMT) 3/1/2023
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account ManagerClient Manager regarding their use.
- You may wish to consider closing your position in profit, even if it is lower than suggested one
- Trailing stop technique can protect the profit – Ask your Senior Account ManagerClient Manager for more detail