Why Invest in Platinum?
The price of platinum is forecast to surge this year.
Could platinum be an interesting investment for the upcoming years? Platinum is the third most traded precious metal in the world yet is relatively cheap and historically undervalued. Despite its volatility, platinum has stabilized, and investors perceive this as a buying opportunity.
In its latest report, the World Platinum Investment Council raised its 2023 forecast deficit for platinum to a record high of 938,000 ounces, up 77% from its previous projection. That would be the biggest shortfall since the 1970s. Automative and industrial demand continues to rise and is on track to be the strongest on record.
The platinum market's predicted supply deficit as well as its strong long-term outlook also make it hugely compelling for investors.
Platinum may be deeply undervalued.
Here are a few reasons to sum up why platinum is considered to be undervalued:
Supply constraints. The supply of platinum is relatively limited, and it is not as easily mined as other precious metals such as gold. This means that the supply of platinum is not likely to increase significantly in the future, which could drive up the price.
Growing demand. The demand for platinum is growing in a number of industries, including the automotive, electronics, and jewelry industries. This is due to the unique properties of platinum, such as its resistance to corrosion and its ability to withstand high temperatures.
Relatively low price. The price of platinum is currently lower than the price of other precious metals, such as gold and palladium. This is despite the fact that platinum is more rare and has a wider range of industrial applications.
The rise of electric vehicles. Electric vehicles do not use platinum in their catalytic converters, as gasoline-powered vehicles do. This has led to some concerns about the future demand for platinum. However, it is important to note that platinum is still used in a number of other industries, and the demand for the metal is likely to remain strong in the long term.
The global economic slowdown. The global economic slowdown has led to a decline in demand for precious metals in general. This has also contributed to the undervaluation of platinum. However, it is important to note that the global economy is expected to recover in the years to come, which could lead to an increase in the demand for platinum.
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Diversify with Platinum
Platinum is a good investment for diversification. It is not as correlated with other assets as gold, so it can help to reduce risk in your portfolio.
Platinum is a good investment for investors who are looking for a long-term investment. The price of platinum has historically been volatile, but it has also trended upwards over the long term.
Platinum is a good investment for investors who are looking for an investment with industrial applications. Platinum is used in a wide range of industries, including the automotive, electronics, and jewelry industries.
"Platinum is the ultimate
safe haven asset. It's not as widely held as gold, so it's less likely to be sold in a panic. And it has industrial uses, so it has intrinsic value beyond its role as a store of wealth."
-Peter Schiff, CEO of Euro Pacific Capital
"Platinum is poised for
a major breakout. The fundamentals are strong, and the technicals are starting to align."
-Mike McGlone, senior commodity strategist at Bloomberg Intelligece
"Platinum is the most undervalued precious
metal in the world. It's used in a wide range of industries, and its demand is only going to grow in the years to come."
-David Rosenberg, chief economist at Gluskin Sheff & Associates