It is impossible to time the markets or know exactly how high platinum is headed, but we do know that in the next few years, platinum demand is expected to increase more than supply steadily. This metal is no longer relying on old sources of demand, but finding new uses in industry and once again attracting long-term investors.
Although platinum is often overlooked by many investors, there are several more reasons to invest in platinum, including:
1. Limited supply
Platinum is much rarer than gold and silver. The world’s annual production is only about 8 million ounces, accounting for only 10% of the world’s annual gold production.
2. Demand growth
The demand for platinum in the industrial and investment sectors is growing, so the demand for investment in platinum is also increasing.
Precious metals tend to perform well under adverse economic conditions, and platinum is no exception. Platinum is still at a historically low level due to the struggle between platinum and its sister metal palladium. Yet, platinum is due for a major rally, and savvy investors know that when sentiment is poor, it actually provides to most opportunity to stock up on under-rated and undervalued assets.
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