![]() ![]() " Precious metals outlook hinges on pandemic fight and monetary policy direction." " CBOE Gold ETF Volatility Index."įederal Reserve Bank of St. Government Gold Reserve February 28, 2021."įederal Reserve Bank of St. " Department of the Treasury Bureau of the Fiscal Service Status Report of U.S. Don't expect anyone to take them in exchange for anything of value.īureau of the Fiscal Service. That said, if you're looking for insurance in a real disaster, certificates are just paper. Certificates: Certificates offer investors all the benefits of physical gold ownership without the hassle of transportation and storage.Certainly, for those who are expecting the worst, bullion is the only option, but for investors with a time horizon, bullion is illiquid and downright bothersome to hold. Bullion: Coins and bars are strictly for those who have a place to put them like a safe deposit box or safe.The greatest potential profits and losses can be had with derivative products. Futures and Options: The futures and options markets offer liquidity and leverage to investors who want to make big bets on metals.Unless you're aware of how mining stocks are valued, it may be wiser to stick to funds with managers with solid performance records. Common Stocks and Mutual Funds: Shares of precious metals miners are leveraged to price movements in the precious metals.You will not get the actual delivery of a gold bar or silver coin. Commodity Exchange-Traded Funds (ETFs): Exchange-traded funds are a convenient and liquid means of purchasing and selling gold, silver, palladium, or platinum. Investing in ETFs, though, doesn't give you access to the physical commodity, so you don't have a claim on the metal in the fund.This creates greater potential for cartel-like action that would support or even artificially raise platinum prices. Platinum mines are heavily concentrated in only two countries: South Africa and Russia.Keep in mind, though, that the rise in no-emission vehicles could put pressure on prices. Demand in 2022 also increased, but by a marginal 2%. Supplies dropped by 5% and demand increased by 21% during the first quarter of 2021 (primarily driven by the automotive industry), which could lead to an upward tick in the metal's price. The drop in vehicle production and curtailed demand for autocatalysts (which accounts for a third of platinum demand) during the COVID-19 pandemic pushed prices down. In this respect, prices have been determined, in large part, by auto sales and production numbers. Platinum prices are influenced heavily by the geopolitical conditions in the countries where mining takes place as well as the supply and demand equation.Petroleum and chemical refining catalysts and the computer industry use up the rest. ![]() After this, jewelry accounts for the majority of demand. The greatest demand for platinum comes from automotive catalysts, which are used to reduce the harmfulness of emissions. Like silver, platinum is considered an industrial metal. ![]()
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