Dr. Copper may get all the attention as a famed economic forecaster, but right now his poor cousin Dr. Platinum is attempting to drive its platinum dependent automobile straight off the nearest cliff!
Platinum prices have been in complete freefall this spring:
A spring to forget for platinum (Source: Barchart.com)
A freefall which becomes especially scary when considering the importance of platinum’s upcoming battle for $1400:
Last time platinum dropped decisively below $1400, it went all the way to $800! (Source: Barchart.com)
Fundamentally, platinum supplies are currently high, and expected to remain at elevated levels throughout at least the end of the year. It will be interesting to see if South African production keeps cranking at these lower price levels, given the high input costs miners have been contending with. But we saw in 2008 that when key support levels are taken out and deflation takes hold, all bets are off.
Hat tip Dr. Evil for pointing out the platinum chart, and the initial bad omen analysis.