If you knew the exact answer to the question about the future price of platinum you would be a millionaire, but from past experiences, you can determine how much it will rise. Platinum had its ups and downs in the past, but that happened because people had to discover in which industry they can apply it. Today, it has many purposes, and in the last couple of years it has been stable.
New technologies are also going to make it drop the price like using more electric cars than diesel engines. But, we will never know what new technologies will demand platinum, so the number of investors is rising. People are buying stocks or platinum bars and coins. The most popular coins are the platinum Eagles which can be of great importance if something bad happens to the economy.
Drop in Price Because of Car Industry
The spike in price first happened when the car industry started to use it for their diesel motors and one of the first to implement it was Volkswagen. A bad thing is that we are about to surpass this technology and advance to something more popular, electric cars, so the use of platinum for catalytic converters will drop.
We can already see the drop in usage in Western Europe because the popularity of electric cars is rising. But, even if one of the main usages of it is for diesel motors, it is only about 15% of all platinum, so it isn’t something that will impact the price drastically. Because of this lower demand than usual, the price throughout 2017 and 18 dropped below $900.
The price for other precious metals is going up, even palladium which is among the platinum family of elements. This situation can suggest a lot of things, but we can’t expect that the price will continue to drop. That already happened in the past and then increased by 300%. Technology has a big impact, so we will have to wait to see if there will be a use of it in electric cars. Read more on this page.
According to Charts
There are many charts online about the rise of platinum that you can check out. One of the most interesting is from 1970 to today. It is interesting because you can see the spike that happened in the 90s when the price of platinum was $350. Over the next decade, it rose over 700%. If the history repeats itself you can expect one more drastic rise from $900 to probably about 300% more.
You can also check the price compared to gold which is usually around a third lower than gold. But, you should take into consideration that the gold is at the highest price it has been these years and platinum as at the lowest. This means that we are about the see the growth like it happened to gold which just takes time and more demand for the material. Many people speculate that it will be higher than gold.
The goal is to find some new essential use for platinum, a new technology that will be useful to the world. A drastic rising in the price can happen even if there was a really high demand for jewelry made of it. People are spending millions of dollars on jewelry, mostly on gold and diamonds, so a bigger consumption will cause the price to go up.
The Lower Limit
The great run-up platinum had in the 2000s, but the crash happened later in 2008. From 2011 it didn’t’ change drastically. From the recent years it was at the lowest in 2016 at $809, and when the crash happened in 2008 and 2004 it was at $750. Many traders say that it will never go as low as that even if a new crash happens.
If the price is around $850 you only have the risk of losing only 10% of investments which is a perfectly understandable risk to take. Even if the demand becomes lower, it will turn around in a couple of years until they realize the supplies are lowering. The only problem is if the price stays the same and the demand for gold, silver or other metals expands.