Understanding the Cyclical Trends in the Precious Metals Markets

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Investment in precious metals helps counter a volatile stock market. When financial market conditions are uncertain, industry experts recommend investing in more secure alternatives to mitigate risks. One such alternative is gold. You can easily trade or invest in gold online through traders such as GoldStackers

The rarity of precious metals like silver, gold, and platinum makes them highly valued. These are produced under strict regulations in small quantities. Precious metals have withstood market conditions at their worst. In fact, highly liquid precious metal investments are known to surge when other investment instruments falter.

Cyclical Trends

As an investor, diversifying your investment portfolio to include precious metals is a recommended way to ensure steady returns. Global industrial supply-demand dynamics, real-world capital flows, the fallout of the ongoing global debt crisis, and critical supply constraints are expected to drive precious metal prices upwards.

Renowned investment-grade bullion traders like Gold Stackers predict gold and silver will remain safe-havens for a long time. With the shift to a greener economy, palladium prices are unlikely to surge. 

This is because, with the emphasis shifting towards “greener” electric vehicles, there is less use for palladium, which is generally used in diesel vehicles. However, since the supply of precious metals such as gold and silver is less elastic when compared to demand, you can expect a substantial increase in their pricing. 

Gold Pricing

Within three years, gold is likely to touch AUD 2700 to 3380 per ounce. As gold oxide deposits deplete, tapping sulphide deposits while conforming to environmental considerations will be on the agenda.

Performance of Silver

Within the coming five years, silver is on its way to becoming the best performing precious metal. When it comes to hedging, silver is a viable substitute for gold, as it is also much cheaper. Moreover, silver is experiencing a surge in industrial demand applications from electronic commodities to batteries. 

Platinum Market

A growing trend is emerging of platinum partially substituting palladium in petrol autocatalysts. This sector alone will witness a 1.5 to 1.7 million ounces demand for platinum by 2025. 

Since this precious metal is also used in hydrogen fuel cells, a leading low-carbon solution, its yearly demand will rise. Industrial demand for platinum is expected to surge globally. 

Palladium Expected Trend

As platinum replaces palladium, the latter’s low demand will push its prices downward. Industry players anticipate a 1.5 million ounce additional demand for platinum in the auto sector by 2025.  

Rewarding Times

Investing in precious metals over the next three years promises to be tremendously rewarding. This asset class assures you of profitable returns plus super liquidity thereby, capably preserving your wealth. 

Commodity Cycle

The commodity market has always displayed a cyclical nature. Ideally, you should invest in precious metal commodities at a favourable stage in their independent cycles. These cycles run their course based on historical patterns and tendencies. 

Compared to oil, gold holds solid ground despite swings in the economy. Since 2016, the gold market has been experiencing a cyclical upturn. Along with silver, gold and other commodities are transitioning to a diminishing supply period one at a time while following the commodity cycle pattern. 

The mining of precious metals is an energy-intensive exercise. Mines have to dig through tons of earth to extract relatively tiny quantities of pure gold, platinum, silver, or palladium, thus making them more expensive. 

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