Platinum as investment

By 16/09/2021News
morning-news

Gold  1792,125
(-0,08%)

EURUSD   1,1811
(-0,04%)

DJIA  34681,50
(-0,45%)

OIL.WTI  72,495
(-0,14%)

DAX  15690
(+0,01%)

Platinum and palladium have been rising for the last three years, after which the markets have reversed sharply and have been falling steadily for the last five months. It is worth looking at the situation to see if a buying opportunity arises.


Platinum

Platinum

Due to the shortage of microelectronics, almost all car manufacturers slowed down production, which in turn affected platinum group metals. Platinum started to fall quite rapidly in price. For a while, the price was supported by speculators who wanted to get more out of these metals than gold, but now they are also at risk.
What is happening now. Automobile manufacturers have not been able to restore the former production capacity and are now in limbo. Reuters generally states that the situation in the automotive industry is worsening.
Should we now look at platinum as an investment instrument?
If you look technically, platinum is very much oversold and that is a good signal for a possible entry into a position.
It is worth noting that the precious metal is used quite a lot in green technology products. For example, platinum is a very important element in hydrogen engines. After the US election, Biden already in the first week of his presidency set the course for the development of new “green technologies”. Now a huge amount of dollars is being prepared in the U.S. that will come to the market. Quite a lot of it will be spent on new technologies and projects.
Platinum is now being used in catalytic converters in cars. The continuing tightening of environmental regulations around the world will increase the demand for platinum. There are also plans to use the metal in lithium-air and lithium-sulfur batteries for electric cars.
Putting all factors together, platinum looks good as a long term investment.

03.30 Australian unemployment rate
14.00 Address by ECB head C. Lagarde
14.30 US Retail Sales in August


Important Notes on This Publication:

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.