How International Markets Are Keeping the Demand for Precious Metals High
Over the last few years, people have become skeptical about importing and exporting just about anything.
Due to high tariffs on goods imported into the U.S., doing so has become less attractive and more difficult for American companies. Plus, simply transporting foreign goods into the U.S. has become more difficult. Off the coast of California, ships carrying all kinds of goods from Asia, including semiconductors, electronic devices and even automobiles, are waiting to dock. Although that delivery holdup is lessening, the slowdown that was caused by the coronavirus pandemic is still exerting a negative effect on U.S. manufacturing and commerce.
But before you throw up your hands and conclude that this is a bad time to think about doing business internationally, consider the following global trends that, in sum, are keeping the demand high for gold, silver and platinum.
Trend One: The Growing Middle Class in China
Did you know, for example, that Tesla sold about 137,000 electric vehicles in China in calendar year 2020? Most were made at Tesla’s manufacturing facility in Shanghai. General Motors, Toyota, VW, and other carmakers are making and selling their cars there too, at rates that are setting records.
This emerging new market for cars, many of them electric or gas/electric hybrids, is sure to create a growing market for the gold and silver that are used to make them.
Trend Two: The Growing International Middle Class
In Asia, Latin America, and India especially, the number of middle and upper-class income earners is growing steadily. These wealthier citizens are increasing the global demand for electronics and cars. A boom is on the horizon and with it, the demand for gold and silver is sure to rise.
One related trend is that more people around the world will start investing in precious metals. In North America, smart investors already believe that it is a smart move to invest in gold, silver, and platinum. The increasing number of wealthy citizens around the world will only increase this trend.
Still another trend is that middle-class people around the world are investing in engagement and wedding rings at increasing rates. The international demand for jewelry will remain hot and grow.
Trend Three: Improving Medical Care Around the World
Many advanced medical procedures, from cancer therapies to implantable pacemakers and brain electrodes, were once available principally to patients in North America and Europe. Now they are widely accessible to patients in countries like Dubai, Brazil, and India. They are becoming more commonplace. Because many of these technologies employ gold, silver, and even platinum, this trend will increase the global demand for those metals – a reality that will help keep prices high.
Trend Four: The Growth of Retailing in Africa, Asia and Europe
A recent report from Cision.com, “Global Retail Market Report 2021-2030: Market is Expected to Reach $29361.95 Billion in 2025 at a CAGR of 7%,” reports that at a time when retail shopping in North America seems to be on hold (with the exception of several notable online stores), it is growing exponentially around the world.
An increase in big-box and other retailers internationally will stimulate the sales of many products that are made with gold, silver, platinum, and rare earth metals. So even if you have seen a Sears store closing its doors near where you live, make no mistake. Retail sales around the world are sure to remain strong.
The Message? Now Is a Great Time to Invest in Gold, Silver and Platinum Scrap
The global marketplace is growing and due to the trends we describe in today’s post, it is certain that the demand for precious metals will remain strong in the years to come.
Our advice? Now is the time to invest in gold, silver, and platinum scrap and perhaps to hold it for several years as demand and prices rise.
What kind of scrap should you buy? You can learn more by reviewing our previous posts on this blog. Or call us at 800-426-2344 to discuss investment strategies that will offer you sizable returns in the years to come.