Matt Badiali has predicted that platinum prices will increase significantly in 2018, and savvy investors everywhere are pausing to listen to his advice. Matt Badiali is a well-known investment adviser and a geologist who has a background in higher education. He was a respected professor at Duke University. As someone who is passionate about research and hands-on learning, he has traveled to countries such as Turkey, Haiti, Iraq, Singapore and others in the past. While visiting for work, he learned firsthand about all levels of operations among natural resource companies.
Matt Badiali has toured oilfields and mines all over the globe, and he understands how operations work in relation to political issues, the local economy and much more. He left his career as a professor when a friend of his who is a finance expert asked him to help with a major project. Matt Badiali became interested in investing and finance, and his background in geology makes him a trustworthy source of advice today for natural resource investments. After Matt Badiali’s latest article that was published by Banyan Hill, investors are now turning their attention toward platinum.
In 2018, it wouldn’t surprise me to see platinum prices rise 25%. Here’s why…#Platinum #copper #Zinc #miningindustry #PreciousMetals #investing #commodities #markets #banyanhill $PLAThttps://t.co/ExzrvFilKF pic.twitter.com/2DzfDzmXuR
— Matt Badiali (@Matt_B_Guru) December 22, 2017
Matt Badiali Explains Supply And Demand For Metals
At the beginning of the article, Matt Badiali pointed out that the mining industry has had a rough time for the past six years. Prices for some types of metals started to recover in 2017. However, some continued to struggle. Badiali said that there is a precise but simple formula for determining rising prices of metals, which is that the demand must be larger than the current supply.
To demonstrate this point, Matt Badiali referenced two base metals. With a lack of investment, supply levels for both copper and zinc dropped below the demand in recent years. Copper has been on a slow but steady rise since 2016, and Matt Badiali recently projected a great year for investing in copper based on foreign production interruptions that were reported from one of the world’s largest producers of copper.
Platinum Over The Past Six Years
On historical charts that show the prices of platinum, there has been a steady decrease since 2011 and on through 2016. Although it started to rise slightly, it collapsed again and was the lowest it had been in two years recently. While some may think that this would indicate another bad year ahead for platinum given its past, Matt Badiali said that he is confident of its rebound.
His confidence comes from supply and demand factors. He said that the supply and demand levels were almost equal in 2017. As predicted by the World Platinum Council, the precious metal ended the year with a small deficit. The group supports Matt Badiali’s assessment that platinum will start to expand in 2018. They predict that supply will decrease by one percent to 7.5 million ounces, and they project that demand will increase two percent to 8 million ounces. This leaves a deficit of 250,000 ounces.
Such a deficit may have attracted platinum sellers in the past. However, with the price at such a low point, there will not be a good incentive for sellers to take action without a price hike. This is one of the reasons why Matt Badiali is predicting an increase for platinum in 2018. A second reason cited in his article was sentiment. He used the example of copper in 2017. With copper, the price increased quickly because of predicted demand, and the demand was tied to the increase in production of electric vehicles that require copper. Since there were no major projects on the horizon that demanded more platinum last year, its price fell.
Why Platinum May Soar
In his article, Matt Badiali pointed out that the main use for platinum is in catalytic converters for diesel vehicles. In 2017, the opinion of diesel vehicles became negative after Volkswagen faking diesel fuel efficiency was discovered. When the general opinion of such vehicles fell, the price of platinum fell because of the predicted slowing of production of catalytic converters. Since investors did not predict a rebound, they simply did not buy platinum. When looking at platinum now from the perspective of someone who is mainly concerned with supply, the metal appears to have an unattractive year ahead. It is not widely produced, and the mines that do extract platinum are old, deep and running out of resources.
For these reasons, new mines are not being planned. Badiali said that these factors combined with the current low prices point to a heightened demand in 2018. Also, he pointed out that the European economy is stronger than it has been in recent years, and many drivers in Europe prefer cars with diesel engines. This should help increase both the demand and price for platinum. According to Badiali, he would not be surprised if platinum prices increased by 25 percent in 2018.
If Matt Badiali is predicting such a favorable increase, there is a good chance that it will happen. As someone who traveled to many foreign countries and worked with CEOs, scientists, geologists and other professionals, Matt Badiali knows how to predict production rates for different countries based on factors that affect demand. Not all investment advisers know that platinum’s demand is likely to increase because of the current supply and demand ratio coupled with the improving economy of a foreign continent that prefers vehicles with platinum-based catalytic converters. From verifying the skill level of drilling crews in oilfields to analyzing how efficiently companies run internally, Matt Badiali considers and scrutinizes every detail tied to a prediction before he publishes it.