Featured Content

TRIPLE YOUR MONEY IN A MONTH!

TRIPLE YOUR MONEY IN A MONTH!

Still worried about the economy? Become an elite charter member of George's DAILY PROFITS and you could... TRIPLE YOUR MONEY IN A MONTH! George gave us the $2.8-billion IT infrastructure provider, up 4,745.20%; the $1.8-billion advertising agency, up 1,295.44%; and the $762 million business software company, up 1,213.19%. Only charter members can follow George daily. Learn how here!

Investors—Should You Consider Platinum?

By

The Forgotten Precious Metal InvestmentOver the past two years, everyone has been talking about gold when it comes to precious metals. But, of all the precious metals, I think you should consider platinum.

Traditionally, platinum has traded for more than gold, but in the fall of 2011, we saw this ratio hit a low not seen in over 25 years. Several factors have been against precious metals in 2011 and platinum specifically. The first is the flight to safety in gold, with its higher levels of liquidity. In times of stress, liquidity is highly valued.

Since 3/4 of all platinum comes from South Africa, currency moves are a huge driver for the production and sales of precious metals. As we’ve seen the rand strengthen in 2010 and into the early part of 2011, this has caused fewer sales, as the price of platinum went up. Since the fall, however, we’ve seen the rand depreciate against the U.S. dollar, which bodes well for platinum.

Platinum is used in automotive production primarily in catalytic converters. Auto sales were thought to have gone over the cliff, but in fact we’ve been seeing signs of a rebound. Auto sales were up five percent in 2011 and a further increase of four percent was expected in 2012. For the first time, emerging markets are going to surpass developed nations in auto sales. Even with that growth, sales in the U.S. have rebounded dramatically since 2009, when 10.4 million vehicles were sold up to an estimated 13.5 million units in 2012.

Yes, but you might say that the world economies are weak, so is this the right time to invest in platinum? I would say yes it is, precisely because of where we are in the price of platinum when looking at the big picture. The current marketplace has priced in very poor economic data; however, this will spur massive money supply growth coming forth by world central bankers in 2012. Money supply growth has been shown to lead car sales by three to six months, in addition to overall increases in precious metals prices. This is in addition to more interest rates cuts around the world; another key driver in car sales.

To recap, currently you are able to get platinum that is relatively cheap trading at a 25-year low when compared to gold. Plus money supply growth will be a worldwide phenomenon in 2012, which will be a wind in the sails of both precious metals prices and car sales, which will drive platinum price appreciation.

Premium Content

Secret "New Swiss Bank Account" Safest Way to 44% Returns

Secret

It's the safest—but, until now, completely ignored—place for your money. Because these elite "bank accounts" pay guaranteed 5% cash payments per annum on top of returns on capital exceeding 44%... Learn all about them here.

About the Author, Browse Sasha's Articles

Sasha Cekerevac, BA Economics with Finance specialization, is a Senior Editor at Lombardi Financial. He worked for CIBC World Markets for several years before moving to a top hedge fund, with assets under management of over $1.0 billion. He has comprehensive knowledge of institutional money flow; how the big funds analyze and execute their trades in the market. With a thorough understanding of both fundamental and technical subjects, Sasha offers a roadmap into how the markets really function and what... Read Full Bio »

Exclusive profit Confidential Presentation

Secret Retirement Plan Pays Up to $12,160 a Month?

Secret Retirement Plan Pays Up to $12,160 a Month?

A select group of Americans are retiring with a little-known retirement plan whose advertisement by its issuers is censored by Congress... Yet this plan enables Americans to potentially collect up to $12,160 in monthly income that's sponsored entirely by large-cap American companies. These secret Sponsored Retirement Plans are trumping social security by up to 10 times. And unlike mainstream retirement plans like 401(k)s or IRAs, SRPs are ideal for people who want to start with very little money. You could begin your SRP with as little as $10, $50, $100 or $400. To see real-life stories of folks who've built hundred-thousand-dollar portfolios thanks to SRPs and how to get your own plan started today, click here now!

×