Precious Metals In 2021 — All That Glitters Is Not Gold
If you woke up today asking yourself, “I wonder what the outlook is for Rhodium in 2021?” Today’s your lucky day! We’re taking a look at the top 5 precious metals to trade this year. After that, we’ll fill you in on all the trading events coming up this week.
Top 5 precious metals to trade in 2021
Gold is one of the most precious materials on Earth. Its finite nature and wide-ranging industrial use-cases make it a highly sought after commodity and a mainstay of many a trader’s portfolio. Until 2021 that is.
The yellow metal had a strong start to 2020, capitalising on weakened fiat currencies as countries struggled to grapple with the pandemic. Now, as vaccine programmes signal a light at the end of the tunnel, and national economies emerge from the darkness — traders are hopping back onto the currency train, to the detriment of gold price.
Gold is due a comeback, it’s inevitable. The only question is — when?
Gold 2021 Performance
Price on 01.01: 1,893.66 USD
Price on 09.04: 1,736.20 USD
YTD % change: -8.32%
Source: Gold Price
Last week was a relatively good one for Silver traders as prices rebounded from the lows at the end of March. The action followed the news that the FED confirmed its commitment to zero rates. But could there be another ace up silver’s sleeve?
President Biden’s massive $2.3 trillion Green Energy and Infrastructure spending plan — which will involve pumping hundreds of billions of dollars into improving America’s roads, bridges, schools, railways, waterways, airports and cellular network — might just be good news for silver traders.
Biden’s plan requires access to a serious amount of commodities, most notably Silver, a key component in electric car manufacturing. As Big Joe aims to shift the American public toward “going electric”, could this be silver’s time to shine? Silver enthusiasts watch this space!
Silver 2021 Performance
Price on 01.01: 26.30 USD
Price on 09.04: 25.25 USD
YTD % change: -3.99%
Biden’s Green Energy push also has potentially massive implications for the price of palladium. The chemical’s composition makes it an essential metal for cleaning toxins from the environment and yep, you guessed it, palladium is mostly used in the automotive, industrial, and electric power sectors!
Regardless of what the rest of 2021 holds, Q1 was pretty awesome for Palladium. This was generally due to a low supply of physical palladium, as well as increased demand due to an uptick in hybrid car sales — for which the chemical is used as an auto catalyst.
Palladium 2021 Performance
Price on 01.01: 2,458 USD
Price on 09.04: 2,640 USD
YTD % change: +7.4%
Platinum is also an auto catalyst and, as such, both its 2021 performance and positive outlook mirror that of palladium’s. Platinum also has a bonus in that it is almost as effective at its job as palladium, at more than half the price!
Platinum might be poised to make some real moves this year.
Platinum 2021 Performance
Price on 01.01: 1,074 USD
Price on 09.04: 1,209 USD
YTD % change: +12.57%
Another potentially massive beneficiary of POTUS’ latest bill, rhodium is on the march. This incredibly rare material (which also has the same use-cases as platinum and palladium) is a teeny-tiny market in comparison to its chums on this list, with around 85% of it coming from South Africa alone.
Because of this small market, only minor changes to the local scene can have massive implications. Imagine what happens to the price if a mine has to shut for the day, or even if South Africa falls out with the US…
Rhodium has had a barnstorming year and it’s only just getting started. Scary stuff.
Rhodium 2021 Performance
Price on 01.01: 17,050 USD
Price on 09.04: 28,700 USD
YTD % change: +68.3%
Source: Money Metals
What’s on the trading agenda this week?
A busy week lies ahead. Here are all of the events you need to watch out for:
Monday 12th April
● CNY — New Yuan Loans (MAR)
Tuesday 13th April
● GBP — GDP 3-Month Avg (FEB) + GDP YoY (FEB)
● EUR — ZEW Economic Sentiment Index (APR)
● USD — Core Inflation Rate YoY (MAR) + Inflation Rate YoY (MAR)
Wednesday 14th April
● AUD — Westpac Consumer Confidence Index (APR)
● NZD — Interest Rate Decision
Thursday 15th April
● AUD — Employment Change (MAR) + Unemployment Rate (MAR)
● USD — Retail Sales MoM (MAR)
Friday 16th April
● CNY — GDP Growth Rate YoY (Q1)
● EUR — Core Inflation Rate YoY Final (MAR)
● USD — Michigan Consumer Sentiment Prel (APR)
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The Contentworks team