Forecast for Platinum in 2022 & Why You Should Be Investing in Platinum
As we make our way through the first quarter of 2022, more and more people are starting to look to the precious metal market for improvements. After a rough year in 2021, we are finally beginning to see things looking up.
With that said, is it a good time to buy platinum? Should you wait longer? Do you need to act now?
In this article, we’ll go over any significant platinum news that will impact the platinum price forecast 2022. We will also provide you with more insight into whether or not you should invest in the precious metal. Finally, we’ll give you more information on how you can start expanding your portfolio with platinum. Read on to learn more.
Platinum Market News
Before we can forecast what the market will look like in 2022 and beyond, we must first look at what major news events will impact supply and demand. While much of 2021 prices reflected pandemic-related supply disruptions, the market was also affected by an unexpected surge in platinum from a South African mine recovery.
So far, in 2022, we have seen many platinum news outlets reporting on two major factors:
- Increase in Automotive Manufacturing
- Political Tension with Russia
Increase in Automotive Demand
While platinum is in coins, jewelry, and other manufacturing processes, the automotive industry remains one of the primary end uses of the precious metal. Since automotive manufacturers discovered platinum’s ability to reduce toxic vehicle emissions, they have used it as the main component in catalytic converters.
Last year, the demand for platinum fell because automotive manufacturers had to put production on hold due to a chip shortage. However, we’ve already seen an increase in demand as these manufacturers prepare to ramp up production once again.
Not to mention, Chinese platinum imports have been on the rise. While still unexplained, it is believed that the increase in demand comes as a strategic move to prepare the country for increased emissions standards.
Potential Sanctions on Russian Platinum Exports
Russia currently produces much of the world’s palladium supply. The price of that precious metal has been increasing with the rising tensions between Russia and Ukraine. As Russia declared war, the prices surged.
What does this have to do with platinum prices?
Palladium is another metal used to make catalytic converters. If the supply drops, it will increase the automotive industry’s demand for platinum even more. Not to mention, Russia also exports a significant amount of the world’s platinum supply. While sanctions, so far, have not had any impact on platinum, it is unsure of whether it could eventually cause a decrease in supply.
Platinum Forecast 2022
Why invest in platinum when there is so much uncertainty? Simply put, the prices of platinum are expected to rise, especially when compared to last year’s market prices. In Q1, we’ve already seen increases due to the rise in demand. Russia’s impact on the global supply could also continue to drive the prices up.
To put it into perspective, platinum prices closed out last year at 960 USD. Prices are now upwards of 1,000 USD and climbing. Before the increase in conflict with Russia and Ukraine, prices were projected to hit 1,150 USD by the end of Q4. Now, there is potential for that number to increase beyond that prediction.
Is Platinum Worth Investing In?
Based on that forecast, it is certainly wise to consider investing in platinum. 2022 is already showing more promise than in previous years impacted by the pandemic. If you’re specifically wondering, “are platinum coins a good investment?” our answer is still yes. Coins and bullion are excellent options for someone looking to diversify their precious metal portfolio.
As you can see, it’s less of a question of if you should invest and more about asking should you invest in platinum now. We recommend that you get in right away as prices are expected to rise. We’ve already seen significant increases in the past few weeks. Prices have the potential to grow even more as political tensions rise and sanctions spread.
How to Invest in Platinum in 2022
If you would like to start expanding your investment portfolio by investing in platinum, you’ve come to the right place. At IPM, we have a variety of precious metals available—ranging from collector’s coins to bullion. Best of all, we make it easy to add platinum to your IRA if you are primarily interested in investing.
To add platinum to an IRA, all you have to do is follow these three steps:
- Speak with an IPM Representative: We have several representatives ready to answer your questions over the phone. We can also send you an information package to help you learn more about the process of setting up a precious metal IRA.
- Fill Out Your Application: Included in your information packet, you will find an application. You can fill it out to the best of your ability and call us if you have any trouble.
- Choose Your Precious Metals: Once you have submitted the paperwork to establish your IRA, you can start the process of choosing one or more precious metal assets. Our representatives walk you through this step if you need assistance finding the best opportunity for your future. From there, you can continue to add more assets, or you can enjoy the benefits of this flexible and secure investment.
Start Investing in Platinum with the Help of IPM
Are you ready to get started with building a diverse investment portfolio complete with platinum bullion and coins? Then, we recommend that you contact a helpful service representative immediately. You can call International Precious Metals to get in contact with our experts.
We also make it easy to get in touch with us online. You can either ask questions through our live chat window or submit an inquiry through our contact form. We are available 24/7, so you can count on us to get back to you with more information right away.
If you’re interested in reading more about precious metals, check out some of our other great posts including, ‘Are Palladium Coins A Good Investment?’, ‘Key Date Gold & Silver American Eagles and ‘Why Buying Precious Metals Will Keep You Safe From A Stock Market Crash’.