A new potential opportunity for individuals who wish to generate significant levels of returns by investing in commodities has presented itself for the year 2018. While there have been many investment opportunities over the last year in the commodities sector, many of them have already experienced significant price gains in 2017. For example, copper has had its price rise by 27% since 2016 while similar increases have been seen in the zinc and lead markets.
There is a different metal that has not yet had a price increase after the bear market of 2011 to 2016. That metal is platinum. While there was a brief increase in price in 2016, it has since dropped to its lowest price in two years. Matt Badiali believes that there will be a increase in price in 2018 due to falling levels of supply for the metal. According to Matt Badiali, the author of Real Wealth Strategist, the level of supply will not be able to keep up with the level of demand in 2018. The demand for platinum is expected to increase by 2% in 2018 while at the same time there will be a simultaneous decrease in supply by 1% leading to a 3% disparity between supply and demand. Visit streetwisereports.com to know more.
Historically a deficit of this kind would cause individuals who held platinum to sell their holdings. As of right now due to the incredibly low price of platinum this most likely will not occur. Unless there is a significant increase in the price of platinum sellers will not feel that they have an incentive in order to sell. Additionally, Matt Badiali explains that investor sentiment is bullish on platinum. After the issues with diesel cars over the last year investors did not expect demand for platinum to increase.
Platinum is also subject to much more difficulties involving its supply than other metals. Platinum is not a widespread material, and most of the mines which produce the metal are running low on platinum reserves. In combination with the increasing demand for the metal by European automobile manufacturers, there is a recipe for increasing price of the precious metal.
Matt Badiali is a trained scientist who has spent his career in the pursuit of investment opportunities in the natural resources and commodities market. He has a Masters degree from Florida Atlantic University in geology and utilizes his experience as a scientist in order to observe potential investment opportunities firsthand around the world.
Read more on Talk Markets: http://www.talkmarkets.com/member/Matt-Badiali/