Commodities Market Review: Precious Metal Demand Rises While Crude Oil Production Falls

Summary:

  • Platinum (^JPLAT) saw an increase of +11.85% over the past month.
  • Silver (SLV) continues to see a steady rise.
  • Last week Crude Oil saw a rise of +4.28% over a seven-day time frame from the 14th January to the 21st
  • The volatile oil production in Nigeria and Libya are one of the many situations that have caused prices to spike.

Source: Pixabay

The Drive Behind Platinum

Platinum (^JPLAT) saw an increase of +11.85% over the past month from 25th December to 25th January.

Platinum is used extensively for jewellery. Its main use, however, is in catalytic converters for cars, trucks and buses. This accounts for about 50% of demand each year. Platinum is very effective at converting emissions from the vehicle’s engine into less harmful waste products. It is also used in the chemicals industry as a catalyst for the production of nitric acid, silicone and benzene. It is also used as a catalyst to improve the efficiency of fuel cells. As regulators continue to put pressure on consumers to produce less greenhouse emissions car manufactures continue to drive up the demand for this precious metal.

Silver Continues to Grow

Silver (SLV) continues to see a steady rise over the past month of +6.27% in the period from 25th December to 25th January.

Many make the mistake of following CPI-alike indexes for gold or silver forecasts. This can be incredibly misleading, as precious metals do not only move on inflation changes. They are more ‘sophisticated’ so to speak, it is not a one-to-one correlation with inflation that makes them move. However, seeing as silver is a top alternative investment it seems to be increasingly strong as crypto investments are falling out of favour with investors.

Crude Oil Production Is Further Squeezed Driving Up Prices

Last week Crude Oil (CME_CL1) saw a rise of +4.28% over a seven-day time frame from the 14th January to the 21st January. With the US reportingly slashing imports from Venezuela owing to the ongoing political crisis and a total embargo on Iranian oil the market is finding itself increasingly cornered. As key oil producing countries attempt to ramp up its supply to meet this shortfall the price of crude will continue to be driven upwards as supply fall. Oil is never a predictable affair, however, and the volatile production in Nigeria and Libya are one of the many situations that have caused prices to spike.

I Know First Successful Commodities Forecast

On 25th December I Know First algorithm issued bullish predictions for commodities for a 30-day time horizon. The predictions include Platinum (^JPLAT) and Silver (SLV). Over the 30-Day trading period from 25th December to 25th January, Platinum and Silver rose by 11.85% and 6.27% respectively.

How to interpret this diagram

These bullish Platinum and Silver forecasts were sent to the current I Know First subscribers on 25th December.

To learn how you can become a subscriber today, click here.

Please note-for trading decisions use the most recent forecast.

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