Ray Dalio, founder of Bridgewater Associates, emphasized the importance of diversification, highlighting gold as a significant asset. During a speech at the Greenwich Economic Forum in Hong Kong, Dalio discussed the significant risks for 2024, including potential internal conflicts surrounding the U.S. elections (November 5) and economic policy differences between a possible Trump administration and a Democratic administration. He warned of economic warfare preceding military conflicts, particularly regarding the relations between the U.S. and China. He stressed that gold should be included in every investment portfolio, describing it as an effective diversifier and an insurance policy against market fluctuations.

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The World Platinum Investment Council published a report in May 2024. Here is a brief summary:

Platinum Demand and Market Outlook

• Demand for platinum in the automotive sector is expected to decline at a CAGR of only 1.1% between 2023 and 2028, despite the shift to BEVs (Battery Electric Vehicles).
• Platinum is still considered undervalued and will continue to play a key role in hybrid and EREV vehicles, supporting the demand for platinum in the automotive industry.
• The platinum market is expected to face shortages of approximately 430 koz (430,000 ounces) from 2025 to 2028 due to the delayed penetration of BEVs and the continued demand for hybrid and EREV vehicles.

Investing in Platinum

• Platinum is seen as an attractive investment due to expected shortages, production challenges in South Africa, and increasing demand for platinum in hydrogen technologies.
• The price of platinum remains historically undervalued, especially compared to gold (and palladium).

Did you know that about 70% of global platinum production comes from South Africa?
In this country, major mining companies such as Northam, Anglo American Platinum, and Sibanye Stillwater are currently working on reducing their costs and decreasing expenditures and investments. This is likely to lead to larger shortages, which in turn could drive up the price of platinum. If the price of platinum rises, it will become more attractive for these major mining companies to invest again and increase platinum production.

Invest in Platinum

Christine Lagarde has just announced that the ECB is lowering the interest rate by 0.25%, despite ongoing inflationary pressures.

The ECB's key interest rate had been at a record high of 4% since September 2023 but is now reduced to 3.75%. This reduction is the first since September 2019, when the deposit rate was still negative. While markets expect only one more cut this year, economists polled by Reuters last week predicted two rate cuts from now.

The ECB started raising rates later than the U.S. Federal Reserve, but with this June cut, it is now ahead of the Fed, which is still grappling with inflation in the U.S. However, during her latest press conference, Lagarde emphasized that ECB officials base their decisions on economic data, not on the actions of the Fed.

Today's action followed a similar rate cut by the Bank of Canada the previous day and comes after earlier moves to ease monetary policy this year by central banks in Brazil, Mexico, Chile, Switzerland, and Sweden.

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Disclaimer: The information on this webpage is not considered investment advice or an investment recommendation.