Investors are now in what is called an untraditional
climate during this economic downturn.Â
Historical trends and attitudes about platinum have changed because of
the current climate of doubt and fear.Â
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.Â
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.Â
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. |