There is life outside of gold: platinum, a precious metal that will become an investment trend this summer

Is there life outside of gold when it comes to investing? During this period of economic uncertainty, when prices continue to rise, it is important to pay attention to It is good to consider investing in lesser known precious metals such as platinum.. According to Coininvest, a good alternative is to diversify our portfolios and bet on them as a safe haven.

“This product is noteworthy for its purity, brilliance and durability,” says Daniel Marburger, director of Coininvest. In this sense, he describes that “it is also of great value because of its density, stability, it is key in the medical sector, autonomy, electronics, etc. It is anti-allergenic, does not oxidize and is recognized in extreme climatic conditions.” On the other hand, as Mr. Marburger points out, platinum is typically 40% more expensive than white gold.

According to the World Platinum Investment Council (WPIC). the momentum for the hydrogen economy, and in particular the technologies associated with green hydrogen derived from renewable electricity, is growingSo much so that it is estimated that it could meet 25% of the world’s energy needs and be a potential $10,000 billion market by 2050.

As such, they describe from the precious metals exchange platform that “the impact of the announced green hydrogen policy on global demand for platinum is clearly going to be significant in the long term. The current EU and China green hydrogen capacity targets will collectively require the following actions. more than 300 thousand ounces of platinum by 2030.“. More importantly, “as the hydrogen economy grows, this will drive the adoption of fuel cell electric vehicles (FCEVs),” they continue. “The growth in the combustion engine market could create strong demand for platinum, thus providing a solid foundation for platinum as a long-term store of value, with platinum use in combustion engines exceeding 1.5 million additional tons. per year by 2030,” according to WPIC.

On the other hand, it should be noted that during the market turmoil of 2020, when investors were looking for safe haven assets,… Platinum significantly outperformed gold, up 80% compared to 26% for gold.until the end of January 2021.

In the two years that have passed since the fall in prices at the end of 2008 during the global financial crisis (GFC), Weekly performance of platinum outperformed gold by 30-65%.. After this event, “platinum price performance was driven not only by increased investment demand; this was supported by growing industrial demand and exceptionally strong demand for platinum jewelry, which, along with limited supply growth, supported investor confidence despite very weak automotive demand,” Coininvest said in a statement.

Thereby, indicate that there are parallels with today.. The fundamentals of the platinum market continue to improve significantly not only due to strong investment demand, but also due to the growing recognition of powerful drivers of industrial demand: the replacement of palladium with platinum in automotive catalysts and the prospects for hydrogen and fuel cells, as well as a limited permanent supply. recommended by the World Platinum Investment Council.