Demand Is Exceeding Supply for These Metals

This drop can drag down other commodities. [Jeff Clark's Market Minute]( Demand Is Exceeding Supply for These Metals By Eric Shamilov, contributing editor, Market Minute The biggest, strongest trend this year has been the rise of commodities. It’s been the biggest as seen with the CRB Commodity Index rising 26% this year – a full 10% more than the Nasdaq. Everything has been working in favor of commodities – from supply shortages to a seemingly over-accommodative Fed. The supply shortages have been paired with a demand boom providing even more support for prices. This kind of broad-based trend is something investors can consistently lean on. Which means every minor pullback can be seen as another buying opportunity for certain commodities… Recommended Link [The Great Bitcoin Meltdown Is Coming]( [ad_img]( “If you suspect Bitcoin is going to crash, I just want you to know, you’re right.” – Jeff Brown Prepare now, and get rich later… [Here is the truth about Bitcoin that no one else will tell you.]( Using these pullbacks as a buying opportunity makes sense. Especially with demand only set to rise once spending from the $3.5 trillion infrastructure bill starts trickling through the economy. As it happens, we’re seeing a pullback right now. A big part of it has been due to the energy sector. Broad-based commodity indexes have their biggest exposure in energy. Some account for over 50% of the index. So, when energy falls, it can drag down other commodities with it. For example, a combination of [a seasonally weak period,]( overbought conditions, and a slowdown in Asian air travel has all led to the recent selloff. Not only that, but we have a strong dollar, and iron ore prices have collapsed 33% since July. Even ETFs like Invesco Optimum Yield Diversified Commodity Strategy (PDBC) and the iShares GSCI Commodity Dynamic Roll Strategy (COMT) are down around 9% from their recent highs. That’s why I’m still not [bullish]( on the energy sector. But one subsector does stand out to me, and that’s metals – especially platinum and copper. Metals have been hit particularly hard lately. The peak of that selloff coincided with [gold’s flash crash]( just a few weeks ago. And while gold has already recovered all of its losses, other metals haven’t yet recovered. However, that could soon change as prices are signaling that at least a near-term bottom is in for the other metals as well. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. The Downside Is Limited From Here If we look at the risk and the return for platinum and copper, I believe that both have limited downside. The demand for both platinum and copper is outpacing supply. This creates a natural price floor for commodities in general. According to the World Platinum Investment Council, platinum demand will continue to outpace supply this year with 8.04 million troy ounces needed and only 7.88 million in new production. Compared to last year, that’s about a 10% increase in demand with a slight decrease in supply. Take a look at this platinum chart… it shows prices finding[support]( from the recent selloff at pre-pandemic highs of around $1,000/oz... [(Click here to expand image)]( And according to Bloomberg, it’s the same story for copper – which continues to be in a deficit since the pandemic began. The demand is higher than supply by about 200,000 metric tons. Take a look at how copper just bounced right off its 200-day [moving average]( [(Click here to expand image)]( These technical setups are usually good for about a 5%-10% bounce in the near term. In summary, we’ll watch both these commodities. At current levels, they could soon provide a good opportunity for a short-term trade. [“Why I Left a Lucrative Career in Money Management at 42” -Jeff Clark]( Beyond that, there could be something there for longer-term traders or investors too. But for that, we’ll have to depend on the speed of the infrastructure bill providing a longer-lasting spending uptick, increased demand, and therefore, higher prices. Regards, Eric Shamilov Contributing Editor, Market Minute Reader Mailbag How long do you think commodities will keep going higher? Will you be adding more exposure to the metals sector? Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com. In Case You Missed It… [Your Bank is Ripping You Off]( Teeka Tiwari, a former VP at the legendary Wall Street firm Lehman Brothers, is coming forward with a controversial announcement… “Your bank is ripping you off - and you don’t have to take it anymore.” While regular Americans are earning a pitiful .06% on their savings… Wall Street insiders are using a new kind of investment – one that lets you earn as much as 8%… 12%… even 17% or more. Teeka calls it a “Tech Royalty” account. And if you’re like 99.9% of other folks, you’ve probably never heard of it. “Tech Royalty” accounts can pay you up to 296X more interest than regular banks. And get this… That doesn’t even include your capital gain. Because certain “Tech Royalties” have shot up as much as 3,639%… 4,646%… and even 15,911%. It sounds impossible, but it’s true. [Find out why “Tech Royalties” may be the best asset to hold for the 2020s.]( [image]( Get Instant Access Click to read these free reports and automatically sign up for daily research. [image]( [An Insider’s Guide to Making a Fortune from Small Tech Stocks]( [image]( [How to Earn Free Bitcoin]( [image]( [The Gold Investor’s Guide]( [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. 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