Has the Time Come to Invest in Platinum?

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Given the current market circumstances, people may be looking at other precious metals to invest in. For some platinum is a better bet than gold at this time. The question is whether it really is a good choice further down the line.

Platinum can be a Short-term Bet

It is evident that top precious metals, such as gold and silver, are long-term investments. Even if they face a temporary retrace, their value will eventually recover. For those looking at the short-term game, however, the current bullion price momentum isn’t all that promising.

This makes many people look at alternative options. All of a sudden, platinum is getting a lot of attention. It has been a very unusual precious metal market in its own regard. The price per ounce hit $600 in March of 2020, but is now back to over $840.

Compared to gold, it is also a more affordable investment option. One ounce of platinum costs less than 50% of a gold ounce. For a lot of investors who didn’t diversify earlier, this may be a more attractive option. Whether platinum will effectively continue this uptrend, is a different matter altogether. Chasing the top is never a good idea with any sort of investment.

On the other hand, platinum prices often trade at premium to gold. Given the current price comparison between the two, platinum’s value is well below where it could be. Gold has seen a very bullish surge in 2020, thus other metals can go through a similar phase.

Achieving parity between the prices of platinum and gold remains rather unlikely in the short-term. Either gold needs to lose a few hundred dollars, or platinum’s value needs to skyrocket. Given the global platinum deficit, some price movement can be expected.  

What About Stimulus?

It almost seems as if all precious metals are waiting for the same catalyst. For weeks now, there have been talks about introducing more stimulus in the US. So far, nothing of the sort has happened. Consumers and businesses need some relief to get matters going again.

Whether this will happen before or after the 2020 elections, is a different matter. Doing it before then can get Trump some extra votes. Delaying it can be problematic for either candidate later this year. It is not a matter that should be overlooked by any means. 

The final months of 2020 will undoubtedly provide some entertainment. Precious metals aren’t done rallying yet, but it remains to be seen what happens exactly. More bullish momentum for silver and gold will automatically catapult platinum’s value higher. 

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