Friday, 4 December 2020
07:40 AM (WIB)
The most compelling reason to invest in platinum is diversification. Most investment portfolios have an extreme concentration in stocks and bonds, and commodities provide a way to mitigate some of this risk. Platinum also offers traders a way to profit from growth in the automotive industry and the industrial sector in general. Emerging economies will continue to expand, and as they do so, their citizens will consume more manufactured goods. Investing in platinum allows traders to capitalize on this trend without having to invest in local emerging country stock markets. Investing in platinum allows traders to profit from a weak dollar as well as strength in consumer spending. Growth in large industrial economies such as the United States has often occurred at the expense of a strong currency. In fact, US policymakers have kept interest rates low to stimulate consumer borrowing and grow exports.
Investing in platinum, however, does have its risks:
1. A slowdown in the auto sector or a global recession would almost certainly depress prices.
2. The development of new automotive emissions-reducing technology could also sink prices.
3. Significant Fed tightening and strength in the US dollar may lead to weaker platinum prices and weaker commodities in general.
Best regards,
RyodaBrainless
"Live to Ride and Ride to Live"
07:40 AM (WIB)
The most compelling reason to invest in platinum is diversification. Most investment portfolios have an extreme concentration in stocks and bonds, and commodities provide a way to mitigate some of this risk. Platinum also offers traders a way to profit from growth in the automotive industry and the industrial sector in general. Emerging economies will continue to expand, and as they do so, their citizens will consume more manufactured goods. Investing in platinum allows traders to capitalize on this trend without having to invest in local emerging country stock markets. Investing in platinum allows traders to profit from a weak dollar as well as strength in consumer spending. Growth in large industrial economies such as the United States has often occurred at the expense of a strong currency. In fact, US policymakers have kept interest rates low to stimulate consumer borrowing and grow exports.
Investing in platinum, however, does have its risks:
1. A slowdown in the auto sector or a global recession would almost certainly depress prices.
2. The development of new automotive emissions-reducing technology could also sink prices.
3. Significant Fed tightening and strength in the US dollar may lead to weaker platinum prices and weaker commodities in general.
Best regards,
RyodaBrainless
"Live to Ride and Ride to Live"
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.