Carsten Stork analyzes the current platinum market as being in strong demand and in an upward trend, fueled by a number of factors. Two of these, namely tariffs and a supply deficit, play a central role. But what does this mean for investors?
The Impact of Tariffs
Trade tariffs, especially protectionist measures such as the recently introduced punitive tariffs on metals, have significantly affected the commodity market. For example, tariffs of 50% on copper imports have led to a scarcity in supply, driving prices up. Platinum benefits in this environment as it is considered relatively undervalued compared to other metals.
Sustained Supply Deficit
Another key element of the analysis shows that there is currently a deficit in the supply of platinum, resulting in demand exceeding the available supply in the market. This imbalance is significantly contributing to price increases and supporting the ongoing upward trend.
Positive Market Development
Recently, the platinum price has seen an increase of over 4%, further highlighting the positive market development. Speculators have clearly positioned themselves on the long side, making further price increases likely.
Overall, the platinum market appears robust despite geopolitical uncertainties and a cautious monetary policy by the US Federal Reserve. The combination of protectionist tariffs and tight supply creates a bullish market situation with potential for further gains. These factors make platinum an extremely attractive investment in the commodity sector.