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Platinum Historical Trends

Precious Metals are a Reliable Investment

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Investors are now in what is called an untraditional climate during this economic downturn.  Historical trends and attitudes about platinum have changed because of the current climate of doubt and fear.  Platinum usually has a reputation for being an expensive metal, like gold, but it is considered less safe than gold, even though it's now trading at an equal level.  There are many concerns about the gold prices and the unstable path that it's taking, as it grows and expands.  Investors think that it might be another bubble waiting to collapse. 

As a result of these factors, there are an increasing number of investors who are rethinking their strategy.  And wondering whether platinum is a better option than gold or silver.  This optimism about platinum prices and the need to invest in this precious metal, has led people like TD Securities to announce plans to ramp up their investment strategies.

Moving into platinum investing takes guts, and it is not an ideal metal for investors seeking safety.  Things like economic uncertainty, wage disputes in South Africa and other factors, may drive the price back down.  Platinum, like silver, also isn't a recommended strategy for investors seeking quick turnaround on payments, because platinum doesn't have rapid price increase, and it's not expected to change.  Investing may still seem like it's suited for those who can tolerate the slow rate of returns that the metal produces. 

With incoming economic data, especially from the EU, Japan and the United States are playing a fundamental role in how the investment plays out with regards to platinum. When economies are expanding or coasting, platinum tends to be the metal of choice. However, if there is economic trouble or even a suspicion that there might be an economic downturn, platinum, historically, hasn't performed very well.

Analysts put it this way, "if we want to buy now and hold onto it for a year or two, it would probably be a very good trading option, because platinum's fundamental signals are mid-term return on investment, but investors who are desperate to make money on a short-term basis, are positioning themselves for failure, because this isn't considered a short-term investment".

When it comes to the economic data, Asian markets seem to be playing a role in how well platinum progresses.  Right now, the overseas markets are in trouble, and platinum is not considered a good investment at this time. While speculators might invest, long term investors depending on the industrial qualities of platinum may wait to gauge future indicators.

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