Is platinum a buy or a sell in November?

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Platinum currently has a very good risk/reward ratio in the market
If the price jumps above $900, the next target could be $950 0 or even $1000.
Pfizer and BioNTech have developed the vaccine COVID-19, which is effective in more than 90% of patients

Platinum is expected to continue to be supported over the long term and may even move up in November of this year, if the global situation stabilizes. Pharmaceutical company Pfizer announced that it may have a coronavirus vaccine ready in the United States by the end of this year.

Basic analysis: Platinum has a very good risk/reward ratio

Platinum has fallen from $1009 to $830 in less than three months and the current price is around $870. Platinum did not rise this Monday despite Pfizer and BioNTech announcing that their co-developed vaccine against COVID-19 is effective in more than 90% of patients.

Platinum as an investment has a much shorter history in the financial sector than gold or silver, and more than 75% of the world’s platinum is mined in South Africa. Platinum is about 15-20 times scarcer than gold, and therefore platinum is typically sold at a significant premium to gold.

This is certainly not the case at present, and the price of platinum is lower than the price of gold. It is important to note that in times of economic uncertainty, the price of platinum tends to fall and fall below the price of gold due to lower demand, partly as a result of the higher price of gold.

This is one of the reasons why, unlike other precious metals, the price of platinum did not rise significantly during the coronavirus crisis. Platinum has found strong support above $800 and the technical picture suggests that the price may recover in the coming period.

If you want to invest in platinum, the current price level is a good value for what you are paying, and perhaps now would be a good time to buy this precious metal.

Technical analysis: Bulls focus on breaking through the resistance level at $900

The technical picture suggests that the price has bottomed out, but is it ready for an upswing? Let’s take a closer look at the following chart. In my opinion, platinum has a very good risk/reward ratio in the market right now and investors in this valuable commodity can gain a lot more by taking a comparatively lower risk.

Data source: tradingview.com

The current resistance levels are $900 and $950, $850 and $800 represent the current support levels. If the price jumps above $900, it would be a signal to trade platinum and we have the open road to $950.

A rise above the $950 supports the continuation of the upward trend and the next price target could be around $1000. On the other hand, if the price falls below $800, this would be a strong “sell” signal and we have the open path to $700.

Summary

I think platinum has a very good risk/reward ratio in the market right now and investors in this valuable commodity can gain a lot more by taking a comparatively lower risk. It is important to say that this precious metal is different from gold or silver in terms of investment. The price of gold and silver usually increases when the economy is in recession. Platinum price charts show the opposite – it falls when the economy is in a slump. This is one of the reasons why platinum, unlike other precious metals, did not experience a significant price increase during the coronavirus crisis. According to the rules of technical analysis, the main trend of this precious metal remains neutral. If the price jumps above $900, this would be a signal to buy platinum and we have the open path to $950.

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