Fri, 16 March 2012
Mickey Fulp, the Mercenary Geologist, is always trying to see the world in different ways. When you can break from the pack to gain unique insight into the way markets behave and participants react, there's a great potential for profits. When we talked to Mickey back in October, Platinum was trading below Gold, an occurrence that has happened only very rarely in the past. Every time it's happened before, Platinum has posted large gains, and this time has been no exception. Today, 3/16/12 it's at $1670; Mickey was a buyer at $1500. Now, it's back over Gold and the fundamentals look extremely favorable.
The undervalued commodity play of the decade has to be natural gas. It's trading just over $2 per mcf, and the ratio of btu's against a barrel of oil just shot up 50! Of course there are very good reasons why this is happening. The shale gas boom in the US has given us an extreme NG surplus. It's a regional market, and the gas is very hard to move and export to other places in the world. But, be sure that as long as the world is hungry for energy, someone will find a way to get that gas where it needs to be. Especially when gas trades around $10 per mcf in Europe and $15 per mcf in Asia. But patience in this market is clearly a requisite and a virtue.
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