In the accident, the interest in precious metals, which used to work as a security, were prominent. This year, gold broke a record high of $2,000 an ounce, but the power of speculation is not over. Investing in precious metals can be profitable, especially if you save for platinum and silver.
Invest in precious metals
Sponsors can invest in various instruments related in one way or another to the value of precious metals. The first and easiest way is to buy precious metal bars and coins from pacificpreciousmetals.com.
The next way is to invest in precious metals through a register that specifies the name and value of the metal, usually gold. In this sense, the amount of money in the file changes depending on the input of the precious metal.
A third way is to invest in the gold mining market in exchange-traded funds (ETFs). The fourth way is to buy precious metal from afar, which is actually part of destiny.
Finally, the fifth way is to invest in tokenized products, where the investor does not have real assets, but the size of their assessment changes as the value of the hidden assets is shown. The latter method allows the lender to use the property that they do not really talk about in the correct sense of the word quickly and for free.
Therefore, the interest in precious metals is mainly promoted by their ability as a protection and the rapid development of issues related to them. In 2020, gold broke the high of $2,000 per ounce and set a benchmark of $2,089.2 per ounce in August.
A passion for passion and precious metals
Amid the high or low interest rates in many financial instruments, lenders see precious metals as a safe haven. Russian banks are breaking records for interest in precious metals.
The bank is wrong that its customers have invested real resources in such tools since the beginning of the year, and the main thing is to support this area. In addition, we consider remote transactions – almost token resources, when one cannot “contact” their resources.
In the first seven months of 2020 alone, the bank has increased its business of gold coins and silver coins 3.2 times. Meanwhile, buyers of these coins, unlike bullion buyers, do not pay VAT, and the actual coins may end up motivating the numerologists. Despite this, the bank found a way to sell gold several times in July alone than it had a year ago. Precious metals prices and the financial impact of the pandemic are keeping demand down. However, national banks actually have a net position in gold. In the first half of 2020, capital interest in silver increased by 10%, and interest in the stock market increased by more than 30% and exceeded the peak of 2009. Also, VC silver coin transactions increased by 66% year-on-year . .
Why is the price of platinum rising?
According to the World Platinum Investment Council, the decline in platinum production due to the Covid pandemic has led to a shortage in the metal. However, two multidirectional factors affect the platinum market.
From some point of view, low creativity leads to a decline in the popularity of machines from large organizations. Again, there is a growing demand from supporters who are looking for a safe haven – as in the case of gold and bitcoin.
Mines in South Africa have been in lockdown throughout the spring and resumed operations in early June. In this case, the price of platinum expected in the business is that of the store, but one of the most critical sources of the store – scrap platinum – is undoubtedly difficult to reach the company n ‘due to the decline of the joint stock. After that, waste recycling also decreased by 19%. The decrease in supply was offset by a decrease in demand – demand fell by 19% compared to April-June 2019. In some areas, the decline was more severe. Specifically, platinum usage fell 48% in the automotive sector and 27% in the gemstone sector. At the same time, interest in platinum bars and coins rose sharply from 133,000 ounces and platinum ETFs came in at 122,000 ounces at the end of the quarter.
Investing in precious metals: pros and cons
In one way, gold has clearly exceeded its realizable value, and the interest in platinum does not guarantee a resulting price increase. Again, analysts actually recommend putting interest in precious metals as part of portfolio expansion. By the end of 2020, the platinum shortage is expected to be 336,000 ounces compared to 125,000 ounces a year ago. Meanwhile, iron production in South Africa, where about 3/4 of the world’s platinum is mined, will decrease by 20%, despite popular recovery before the end of the year. Russia will see a decrease of 9% and Zimbabwe’s results will remain due to high reserves.
However, the automotive sector is expected to reduce interest in platinum by 16% and the gemstone sector by 14%. The main trend in popularity will remain in China, where it is expected that the automotive sector will see a 27% increase in interest in platinum due to strong creative guidelines. In addition, there is growing talk of a potential gem-explosion, especially in the Middle Kingdom later this year.
In this way, the perception that the price of precious metals remains positive. As such, platinum has room for appreciation. Also, we can expect good signals from gold and silver. It is no coincidence that promoters invest real resources in developing new stores. The new Klen mine in Chukotka is expected to produce about 2.8 million precious metals: about 1.5 million gold and 1.3 million silver per year. The total interest in the project will reach about 7.5 billion rubles, and the current store should be operational by 2021. However, he will soon reach his goal.