Future of Platinum as an Investment

With the auto industry in such decline, and it being one of the major users of platinum and thus demand, it was debatable late in 2008 whether platinum and platinum prices in 2009 would do well, with many thinking it would tank.

Platinum prices continue to surprise many investors, as it has outperformed so far this year, and it's probably just getting going.

A couple factors in this include the ratio of gold and platinum in price, and the continuing decline of the U.S. dollar as bailout mania continues, and downward pressure on the greenback continues relentlessly.

As far as the gold and platinum ratio, it's closer than ever, and with platinum being far more scarce and more in demand for physical goods than gold, it could be a major factor now and over the next several years.

The higher cost of gold has even had Indian people gravitating toward platinum for jewellery, rather than their usual acquisition of gold during their wedding season.

Now that the horrendous decision by the U.S. government has been made to buy up about $1 trillion in securities, precious metals, especially gold and platinum, could surge to huge numbers in a relatively short time as inflation fears and concerns pummel the mind of traders and investors.

Platinum prices in 2009 should continue to move up, as most the pieces are in place for it to do so. If the auto industry was doing better, who knows how high it would go. Either way, platinum futures should continue to skyrocket going ahead.

By Taylor