Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Chinese Tech Stocks CCP Paranoia and Best AI Tech Stocks ETF - 26th Oct 21
Food Prices & Farm Inputs Getting Hard to Stomach - 26th Oct 21
Has Zillow’s Collapse Signaled A Warning For The Capital Markets? - 26th Oct 21
Dave Antrobus Welcomes Caribou to Award-Winning Group Inc & Co - 26th Oct 21
Stock Market New Intermediate uptrend - 26th Oct 21
Investing in Crypto Currencies With Both Eyes WIDE OPEN! - 25th Oct 21
Is Bitcoin a Better Inflation Hedge Than Gold? - 25th Oct 21
S&P 500 Stirs the Gold Pot - 25th Oct 21
Stock Market Against Bond Market Odds - 25th Oct 21
Inflation Consequences for the Stock Market, FED Balance Sheet - 24th Oct 21
To Be or Not to Be: How the Evergrande Crisis Can Affect Gold Price - 24th Oct 21
During a Market Mania, "no prudent professional is perceived to add value" - 24th Oct 21
Stock Market S&P500 Rallies Above $4400 – May Attempt To Advance To $4750~$4800 - 24th Oct 21
Inflation and the Crazy Crypto Markets - 23rd Oct 21
Easy PC Upgrades with Motherboard Combos - Overclockers UK Unboxing - MB, Memory and Ryzen 5600x CPU - 23rd Oct 21
Gold Mining Stocks Q3 2021 - 23rd Oct 21
Gold calmly continues cobbling its Handle, Miners lay in wait - 23rd Oct 21
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Major Optimism for Platinum, Silver, and Copper

Commodities / Metals & Mining Feb 16, 2021 - 11:37 AM GMT

By: MoneyMetals

Commodities

Attention in the metals markets shifted this week from silver to copper and platinum. While big moves in silver and gold prices may be coming down the road, the monetary metals are currently taking a back seat to electrical and automotive metals.

A massive push by the Biden administration to replace gasoline vehicles with electric vehicles is helping to crank up demand for copper. Anything involving electricity involves copper – and lots of it.

Electric vehicles and their massive batteries contain an average of 180 pounds of the metal.  That’s six times the copper that’s used in gasoline cars. Even larger quantities of copper are required for EV charging stations and necessary upgrades to electrical grid infrastructure.


Electric vehicles sales are expected to grow from 4% of the market to 10% by 2022. And if the “Zero Emission” lobby gets its way, EVs will be 100% of the car market by 2030 with a federal prohibition on gasoline vehicles.

Regardless of concerns about personal freedoms being trampled in the process, it may simply not be feasible to power tens of millions of new electric cars without enormous upgrades to electricity generating capacity.

That will require enormous quantities of industrial materials, including copper. And the red metal isn’t likely to come any cheaper in the years ahead.

In particular, platinum is on the move. Concerns over a mining supply deficit and the prospect of renewed demand from automakers and jewelers are helping to send platinum prices more than 13% higher this week.

As long as platinum continues to trade at a discount to gold, it will look relatively attractive to investors and jewelry buyers.

And as long as platinum continues to be available at a much cheaper price than palladium and rhodium, it will be sought by automakers who are looking to lower their catalytic converter costs through substitution. 

Gasoline cars are still the vast majority sold, with growth in the developing world projected to remain strong. But if electric vehicles do become market dominant over the next decade, that could deal a blow to the demand profile for platinum and palladium absent an increase in their use in battery or fuel cell technologies.

Silver, however, is expected to see major increases in demand from electric vehicle production and solar power generation. Silver is essential in a variety of electronic applications, including cell phones, due to its superior conductive properties.

Silver along with its more prestigious cousin gold may increasingly come to be seen as essential for wealth protection amid rising inflation risk. 

With $1.9 trillion in new federal spending coming down the pike, more stimulus checks, and a possible minimum wage hike, price levels in the economy seem bound to rise. If all that isn’t enough, then Federal Reserve officials will keep pumping fresh liquidity into the financial system until consumer price inflation takes off to their satisfaction.

Fed Chairman Jerome Powell gave remarks to the New York Economic Club on Wednesday. He acknowledged U.S. government finances weren’t on “a fiscally sustainable path.” But he insisted federal budgetary issues play no role in the central bank’s policy decisions.

And despite his frequent claims of not wanting to take sides in political debates over fiscal policy, Powell suggested Congress shouldn’t even try to rein in the deficit at this time given high rates of unemployment.

In this environment where deficits don’t matter and monetary policy is ultra-loose, investment demand for precious metals is likely to remain strong. Although the pace of public bullion buying isn’t as furious as it was several days ago, market conditions remain tight. 

Although Money Metals is still fairly well supplied, other U.S. dealers are mostly sold out of privately minted silver bars and rounds – the favorites of value-focused silver investors.

The supply situation in silver coins is similar, with some availability but higher premiums on certain items, particularly Silver Eagles which have become scarce as a result of the U.S. Mint failing miserably to keep up with the retail demand.

Gold, platinum, palladium, and copper products have faced less intense buying pressure. Availability and premiums there are generally not as stressed at this time, although they are still up a bit from their pre-Covid levels. 

Conditions can change without warning or notice. So can spot prices. Those who are waiting for the “perfect” time to buy would be well-advised to take at least a partial position beforehand – in case the perfect time never arrives.

By Mike Gleason

MoneyMetals.com

Mike Gleason is President of Money Metals Exchange, the national precious metals company named 2015 "Dealer of the Year" in the United States by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC, and his writings have appeared in hundreds of publications such as the Wall Street Journal, Detroit News, Washington Times, and National Review.

© 2021 Mike Gleason - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in