It is only a matter of time before the fortunes of platinum take a step in an upward direction. This is according to the editor of Real Wealth Strategist, Matt Badiali. The seasoned financial advisor was of the feeling that metals were generally being shunned by numerous market players. The trade war between China and the U.S. is largely to blame for this state of affairs.
China has over the years established itself as a force in the production of metal commodities. It is well known for its love of raw ores which it smelts and uses to manufacture useful products. In the last few years its demand on most of these ores has gone down considerably. This has inevitably resulted in a slump in the prices of zinc, gold and copper among other metals.
The trade war has made things worse for these prices which are hitting new lows. Things are not looking up as none of the parties has shown any signs of relenting. The greatest casualty of the trade wars has been platinum. Its price has steadily declined in the last couple of months. It recently reached an undesirable 14-year-low.
One would think that with the low supply, then the prices would still be reasonable. The mines in South Africa have been the leading producer of metal. Matt Badiali pointed out that the mines had not produced as much as was expected. During the first quarter of the year the demand was far much higher than the supply. Ordinarily this would cause the prices to go up. The opposite has taken place.
Although Matt Badiali expects the price to keep going down given the free fall it is experiencing at the moment, he believes that this will not last long. When the upward shift eventually takes place, the prices will most likely experience a quantum leap given the relationship between supply and demand at the moment. He expects the trade war fears to fade away paving the way for a change in fortunes.
Matt Badiali serves Banyan Hill Publishing as the Chief Resource Investment Expert. He is an expert in natural resources and share his knowledge with investors through the newsletter. Most of his predictions have helped to transform the lives of numerous investors.
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