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Is platinum a good investment right now?
Platinum offers a unique investment opportunity, with strong merits to consider: Platinum’s precious underpin offers a low-risk entry for investors looking to buy into this investment asset. Platinum has a low correlation to the performance of traditional assets and performs well during periods of economic recovery.
Is platinum a bad investment?
Unless you want to get into the jewelry-making game, investing your hard-earned dollars into precious metals like gold, silver and platinum is not the best use of your money.
Why has platinum dropped in price?
The price of platinum changes along with its supply and demand; during periods of sustained economic stability and growth, the price of platinum tends to be as much as twice the price of gold; whereas, during periods of economic uncertainty, the price of platinum tends to decrease because of reduced demand, falling …
Why is platinum going down in value?
The value of platinum, however, is directly tied to manufacturing, specifically in the creation of catalytic converters. When cars are being produced at a slower rate because of a recession, platinum’s value goes down because the demand is not high.
Can palladium replace platinum?
In the case of the palladium price above the platinum price, theory suggests that where viable, more platinum should be used in automotive catalysts instead of palladium. The 1:1 substitution ratio further suggests that platinum and palladium can be viewed as almost perfect substitutes.
Will platinum go up in value?
Platinum will rise to USD 1,250/oz by the end of 2021, a 16\% upside from Tuesday’s price, UBS forecasted. The firm also said palladium could also hit $2,900 per ounce in 2021, roughly 21\% above current levels.
Why did the price of platinum crash?
Driven by the fear of another market crash, many investors rushed to unload precious metals in exchange for cash. Possibility of a collapse in physical demand from the automotive sector added fuel to the fire, with the platinum price plunging sharply from $1,016/t oz on February 19 to below $600/t oz on March 19.
What is the future of the platinum market?
But there have been some positive developments regarding the demand for platinum since the mid-2020s. The global platinum group metals (PGM) supply, which includes platinum, palladium and rhodium, is expected to reach 22.44 million ounces in 2024, at a growth rate of 6.8\%, while the demand is expected to exceed the supply again in 2021.
What will the price of platinum be worth in 2020?
A few weeks ago, Metals Focus, one of the world’s leading independent precious metals consultancies, published its platinum price forecast for 2020. Their analysts predicted the metal’s price to average at $765/t oz this year, a figure 11 per cent lower year-over-year, reflecting an ongoing market surplus.
What drives the value of platinum?
Like all commodities, it is a complex mix of supply and demand fundamentals that influence the value of platinum. However, the specifics of this particular market are rather unique. The metal’s supply is unusually concentrated, with South Africa producing around 75 per cent of the world’s newly mined platinum.