Is Platinum’s Next Move Down?
Wednesday, 26 October 2011 12:24
Platinum is looking increasingly vulnerable. Net speculative length has been dropping for someweeks now and, as this graph from a Standard Bank report to investors shows, the trend hasbeen generally down for much of this year. The net position is mostly due to an increase in shortpositions – those investors expecting a decline in prices – than a major exit of longs. Thisequates to a market with a weakening expectation of future prices.
Source: Standard Bank
In lockstep with rising short positions is an ETF market that appears to have lost faith in theplatinum market. As this graph from the bank shows, ETF holdings in platinum have beenrelatively flat all year after rising for the previous few:
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