Who is he? Well, besides being the editor of the Real Wealth Strategist, he’s also been a veteran of the Natural Resource Industry, as well as a mining and energy expert for 20-years. And, on Dec 22, an article published on medium.com gave his 2018 predictions for which metal that has been long forgotten will end up soaring in the coming year. So, what is it?
That forgotten metal is Platinum. Badiali explained that the past six years have been pretty brutal for the entire mining industry as a whole and followed up with an explanation of the formula that drives prices and how the demand has to exceed the supply. He went into further detail with his very concise chart for showing platinum’s journey over the last six years. It shows a steady decline during the years 2011 to 2016. Then, the price ended up falling by more than fifty percent with a short rebound in 2016. But, in early December, the platinum price totally tanked, reaching its lowest point in two years. Learn more at Seeking Alpha about Matt Badiali.
So, now the question is why Badiali thinks things will change for platinum in 2018. He says it’s really quite simple because the supply just cannot keep up with the demand for platinum. In fact, the World Platinum Investment Council warns that 2017 is going to end with a deficit of approximately 15,000 oz. That gap is also expected to expand in 2018 when it is anticipated that the demand will rise by two percent to eight million oz. On the other hand, the supply actually could fall by one percent to 7.75 million ounces, leaving a 250,000-ounce deficit! More info about Matt Badiali at tumblr.com
In 2018, it wouldn’t surprise me to see platinum prices rise 25%. Here’s why…#Platinum #copper #Zinc #miningindustry #PreciousMetals #investing #commodities #markets #banyanhill $PLAThttps://t.co/ExzrvFilKF pic.twitter.com/2DzfDzmXuR
— Matt Badiali (@Matt_B_Guru) December 22, 2017
And, according to Matt Badiali, there’s another reason why platinum prices will rise in 2018 and that reason is sentiment. During 2017, copper prices rose due to the expected demand by electric vehicle manufacturers while platinum prices fell for the opposite reason, an expected lack of demand.
Matt Badiali predicts that platinum is going to continue to be in short supply due to the fact that existing platinum mines are old and deep plus they’re quickly running out of metal with no new mines slated for the near future. Put that together with a European economy that is quite strong, Europeans who prefer diesel vehicles, and low platinum prices and platinum’s plight could change drastically in 2018. In fact, Badiali wouldn’t be the least bit surprised if it rose by a whopping 25 percent over the coming year.
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