Precious metals investors are currently bracing themselves for another steep rise in precious metals prices. The gold price is working massively on an upward breakout that could very soon take it to the all-time high from last year 2020 and beyond.
In 2021, the fear of rampant inflation became a certainty. At the same time, the previous inflation rates partly exceeded all the highs of the past 3 to 4 decades. Especially in the US and Europe, most people were caught on the wrong foot and rubbed their eyes in amazement at the sometimes exorbitant price increases. Not so die-hard gold investors, who knew the value of gold as the number one store of value for thousands of years and saw the inflows into gold-backed ETFs skyrocket. Ongoing uncertainties regarding excessive debt levels, the still unresolved Covid 19 problem, disrupted supply chains and persistently high inflation continue to fuel the gold price and should soon lead to new, possibly previously unimagined heights.
Palladium, which was driven to new record highs of over US$ 2,800 per ounce in 2020 primarily for speculative reasons, also suffered only a brief dip and is currently trading stably at a price level of around US$ 2,000. Demand from the automotive sector (use in petrol catalytic converters) is playing a major role here. However, the steadily declining production is also an important price driver, as the existing supply deficit has recently confirmed impressively.
Until a few months ago, the situation for platinum was the opposite. The increasing shift away from diesel as the number one combustion engine led to a decline in demand for platinum, which is used in diesel catalytic converters. As a result, the price per ounce fell below US$600, but has since established itself above the important US$1,000 mark. The supply deficit, already in place since 2019, actually widened in 2020 and is likely to lead to a further speculative rise in the price of platinum. The mass introduction of fuel cells could mean another big leap forward for platinum.
For both platinum and palladium, a drastic collapse in supply is to be expected in the coming years, as the important South African mines in particular will not be able to maintain their production to the usual extent. Even rising prices are unlikely to contribute to an improvement.
This report provides a wealth of information on the precious metals sector and offers insightful interviews with exclusively selected experts from the industry. The presentation of a number of interesting companies that are suitable for speculation on rising precious metals prices completes the report.
