Bill Baruch's Platinum Trade

Bill Baruch of Blue Line Capital suggested on CNBC's "Futures Outlook" investors should consider a bullish futures trade in platinum.

He likes it because the World Platinum Council said there could be a supply deficit next year and the U.S. dollar keeps trading lower, which should bring a tailwind to commodities. He also expects China to continue to stack its reserves of platinum and he thinks the new administration's green initiatives should also have a positive impact.

Baruch wants to buy the January futures contract in platinum at $990. He sees a pullback as a buying opportunity. He would place a stop loss at $945 and his target price is at $1,190.