Four more weeks, then the US presidential elections are due. The uncertainty is high. Wall Street money managers want to be prepared. Her advice to customers is: invest in safe investments. A controversial election result or a contestation of the election could lead to high volatility in the markets. Traditional safe-haven investments, which include gold and the precious metals silver and platinum, would benefit from this. From Petra Maier
The World Platinum Investment Council, an industry association of large platinum producers, is saying the same thing. In addition to the unpredictable effects of the US election on the markets, the association supports its advice to invest in platinum, but also with fundamental arguments.
Around 70 percent of the global platinum supply comes from South Africa. Due to the Covid-19 pandemic, the mines were closed for weeks and only largely reopened after June 1. In the second quarter of 2020, the platinum supply fell by 35 percent compared to the previous year. The amount of platinum from recycling also fell by almost a fifth. At the beginning of the year, the association still expected that more platinum would come onto the market than was in demand. Now the experts are assuming a supply deficit of 336,000 ounces. That should at least support the price of the precious metal.
Platinum ensures cleanliness
Because last came the price pressure from industry, which accounts for around 40 percent of platinum demand. The precious metal is used in catalytic converters for exhaust gas purification. The weakness of the auto industry temporarily weighed on the price. But the recovery is underway in China. The demand for platinum is increasing. The trend is increasing due to the new, much stricter emissions regulations for heavy goods vehicles. In order to do justice to this, a significantly higher amount of platinum is built into the catalytic converters. In the longer term, however, the precious metal should also benefit from the development of hydrogen technology. Platinum plays an important role there as a catalyst for the chemical reaction to generate energy.
After reaching a high of almost $ 1,000 in early August, the precious metal began to correct in the course of the month. The trough now offers investors a good opportunity to switch to the safe haven. The suitable product is the ETC. If you only want to bet on a price increase, use the call.
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