$SBSW 20260116 11.0 CALL$ I have restarted another new position for $Sibanye(SBSW)$. I have had successes with this miner in a few occasions. Sibanye has been stuck in an unwanted zone for quite a long while as the prices of both platinum and palladium suffered.
Sibanye is a predominantly platinum and palladium miner if you have not guessed it. The mines contain some gold and silver (a lot less than gold), but around 60% platinum and palladium.
From the weekly chart below, you can see the rise and rise of Sibanye share price, contributed by the rise and rise of the prices of both palladium and platinum, as shared in one of the example chart below. They have simply followed the rising trend in gold and silver.
The past week has witnessed the correction of precious metals group, but make no mistake, from the trend chart, they are still in consolidation mode. In fact, the uptrend is still intact for all of them.
This led me to take out a new Call option position with expiry date in January. Why January? Although uptrend is intact, I do not try to jump the market to predict when this consolidation period will end. The intention is to give the market a little more time.
Why $11? Looking at the weekly chart, we can see higher highs and higher lows. We can also see the previous consolidation before the chart took off. I am looking at similar setup here. I might be early, but I am quite confident that the upside is substantial. If I am correct, this is likely to be another cup and handle setup. The previous one took it from $9.86 to $13+. I am looking for a long way to $23 (long setup - not for my January setup). This setup started way back from January 2023, so I don't think the payout will happen until sometime mid to late next year.
Why Sibanye? Easy. I am bullish in both platinum and palladium ( not to mention gold and silver - silver is for a separate article by the way). Sibanye captures both of them. I also have ETFs like $abrdn Physical Platinum Shares ETF(PPLT)$ and a small position in $abrdn Physical Palladium Shares ETF(PALL)$. Sibanye is more of a leverage play for these two commodities...
There are too many uncertainties in the economy space not to have alternate holdings other than fiat money, especially USD, that has seen erosion of confidence with the election of Trump as US President. On-off trade relations with China is not helping... Tariffs might look good for the US Administration on the surface, but at the expense of the common people in US. It is important to protect ourselves, and the old-timers of precious metals group stands the test of time to do just that!
@Daily_Discussion @TigerStars @CaptainTiger
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- Ah_Meng·11-10Why do I take so much interest in palladium and platinum? There was a time when platinum was more expensive than gold because it was scarce compared to gold. It still is… but now gold is a lot more expensive than platinum. Both platinum and palladium serve a dual role of precious metals and industrial metals, just like silver now. It is the industrial application’s portion of the metals that has been weighing their value down. However, this could change quickly. Unless we are seeing a rapid economic decline, the prices of platinum and palladium are likely to chase those of gold. This is especially true given platinum has seen increasing annual deficits and palladium is also experiencing shortages, though a smaller proportion. I just can’t see how the prices not following through. That is my short to mid term outlook as far as platinum and palladium are concerned, thus translating into my bullish view for $Sibanye(SBSW)$. @Daily_Discussion @TigerStarsLikeReport