Platinum: Supply, Demand, and Upside Potential
The following article is created by Orion Metal Exchange for the benefit of our investors and perspective investors alike. We seek to provide relevant content concerning precious metals and the impact caused by economic and geopolitical trends that will most likely impact your financial future. If you are interested in learning about precious metal investing, call 1-800-559-0088, for a FREE investor kit.
Platinum is a precious metal commodity that offers upside potential without the investment risk associated with debt. At current levels, platinum would need to increase 130% to reach its all-time high. Platinum is 30 times rarer than gold. Platinum costs more than gold to produce. Currently, platinum’s spot price is less than half the spot price of gold. Making platinum an attractive investment when compared to other precious metals.
Platinum’s Historical Prices Increases
In 1971, an ounce of platinum was worth $90, and in 1980, a mere 8 years later, it had increased more than tenfold to $1000 per ounce. In 1999, platinum was $348 per ounce, and by 2008, platinum reached $2,200 per ounce.
Currently, platinum is $950 per ounce and is expected to make new all-time highs in the next 3 to 5 years. Platinum, when purchased at a discount, offers investors great upside potential. The cost to produce platinum is currently $1,150 per ounce. Purchasing platinum below the cost to produce is an opportunity to purchase at a discount.
Extremely Limited in Supply
Most of the world’s platinum comes from Russia and South Africa, and there are very few platinum reserves, even in these areas. In case of any international unrest in these two countries, or national calamities, there will be great uncertainty regarding the supply of platinum for the rest of the world. This means prices of platinum could immediately skyrocket, making it a smart investment option for the present.
Johnson Matthey is a British multinational specialty chemicals and sustainable technology company that was established in 1817 and has been publishing reports on platinum since 1957. According to Johnson Matthey, platinum in 2024 will reach the biggest deficit in ten years. Based on supply and demand fundamentals, platinum appears to offer a greater opportunity than gold for upside potential moving forward.
Platinum’s Investment and Industrial Demand
Platinum is ductile and malleable and has a great metallic sheen. This means it can be used for industrial purposes and is also less prone to rusting, corrosion or any sort of serious damage.
Platinum coins are utilized to protect against inflation. Sovereign mints produce platinum coins that are designated as legal tender and accepted in barter worldwide.
Platinum is also used in jewelry, glass, catalysts, chemical compounds, healthcare, catalytic performance, electronics, hydrogen fuel cell power. Platinum is considered a key component to the global push to green energy products. Based on the many different applications platinum is utilized in, it looks like demand will continue to be strong moving forward.
Platinum is extremely undervalued. Currently, platinum would need to over double in value to reach its all-time high. The current market value combined with platinum’s current supply deficits, which are expected to continue, point to a rise in value moving forward. Currently, Platinum is offered at a discount and investors should consider diversifying in this metal.
FAQ: Your Key to Understanding!
Is platinum demand increasing?
Platinum is expected to reach a 10-year deficit by 2025 due to higher demand and lower supply.
Is platinum still in demand?
Platinum continues to be utilized in industrial and technological applications.
Is there a shortage of platinum supply?
The World Platinum Investment Council has predicted that global platinum supply would continue to fall short of demand.
The following article is created by Orion Metal Exchange for the benefit of our investors and perspective investors alike. We seek to provide relevant content concerning precious metals and the impact caused by economic and geopolitical trends that will most likely impact on your financial future. If you are interested in learning about precious metal investing, call 1-800-559-0088, for a FREE investor kit.
