Platinum and Emerging Markets
The economy of western countries has been dominating global trade for many decades. But times are changing, and emerging economies like China and India have become powerful economic forces. Because of the increase in their wealth and living standards, their investors are constantly on the lookout for good investment opportunities. One such avenue is investing in precious metals such as platinum.
The Rise of Emerging Countries
As the decade comes to a close, emerging countries have emerged as engines of growth responsible for most of the world’s expanding GDP. According to the International Monetary Fund (IMF), emerging and developing countries now account for 60% of global output. Countries such as Brazil, India, China, South Africa, Thailand, Bangladesh, Malaysia, and Indonesia will shape the demand for a lot of commodities globally, including precious metals.
Why Are They Investing in Precious Metals?
Platinum is one of the rarest metals in the world, with annual production at around 170 metric tons in 2020. Not only is it used in high-end jewelry but it also has a lot of industrial applications. It also is pioneering future technologies. Over the last several years, we have seen an ever-increasing amount of investment in precious metals such as gold, silver, and even platinum by emerging economies.
These countries need platinum both at a macro and micro level. For example, a lot of emerging countries such as China and India are investing in green vehicles and solar renewables, for which platinum is a key input. Platinum is primarily used by automobile manufacturers as a catalyst to reduce tailpipe emissions. Due to these factors, platinum has been referred to as “the original green precious metal.”
While at the micro-level, citizens of these countries are buying precious metals at record levels due to a plethora of factors that have emerged due to the pandemic, including inflation, foreign currency devaluation, corruption, political instability, and more, there is also an elite class in these countries that are demanding platinum jewelry.
Platinum Provides Better Return and Protection
Investors in these countries have a habit of investing in asset classes abroad to diversify their portfolios and get high returns on their investments. However, due to the global stocks markets not performing too well and huge swaths of junk-bond issuers going bust, these investors are now putting their money in precious metals like platinum.
Platinum has a great track record and is universally accepted as a store of value, acts as a hedge against inflation, and has a long history of relative price stability, especially when uncertainty is high like in the current days of the pandemic and geopolitical uncertainty.
Want to Invest in Precious Metals to Make Money?
If you are looking to diversify your portfolio by investing in a precious metal like platinum, then you’re at the right place! At Orion Metal Exchange, we facilitate people like you to invest in the highest quality platinum bars and coins. We also offer the best quality silver, gold as well as gold, and silver IRA to our valuable customers. Request your free investor’s kit here.