Gold 1792,125
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EURUSD 1,1811
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DJIA 34681,50
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OIL.WTI 72,495
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DAX 15690
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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
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.
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