Get Even More Visitors To Your Blog, Upgrade To A Business Listing >>

Platinum is a buy

When we look at the Platinum supply and demand, things are getting worse for platinum. The automotive demand has been going down sharply and we are in platinum surplus now.

But the price of platinum is now at $800/ounce, which means that a lot of producers are having losses. Lonmin and Impala are going to go bankrupt in a year from now. That means that we will see around 2 million ounces less production, which will put the supply and demand balance back into deficit. Platinum price will need to go up.

Moreover, there is one interesting development. Fuel cell cars are going to hit the market in the coming years and they need platinum. So I see platinum demand to go back up due to fuel cell cars in the coming decade.

Conclusion, it is a good time to get into the physical platinum market. Go buy a platinum ETF.

This post first appeared on Correlation Economics, please read the originial post: here

Share the post

Platinum is a buy


Subscribe to Correlation Economics

Get updates delivered right to your inbox!

Thank you for your subscription