Trading Commodities Now

Platinum is an incredibly tough, rare, yet flexible metal and one that is becoming an increasingly crucial material used in industry. South Africa is the world's largest producer of platinum, with Russia the second. The largest known reserves of platinum come from the Bushveld Complex, which is North of Pretoria in South Africa. Like all commodities platinum has a set of unique factors that will influence its price. Unlike gold it is not used as a hedge in harsh economic times and that's because it is used in the production of many key consumer items from computers to cars to catalytic converters. When demand for these goods fall then so too the demand for the materials used in their production.

The price of platinum tends to increase in stable economic times and sometimes can be as much as twice the price of gold. As of 1 April 2010 the price of platinum stands well above the $1600 per ounce mark and has increased 7% since late February. Analysts have pointed to this rise and the increase in manufacturing output in the US and Asian markets as evidence of the world continuing to move out of the recession. And with many analysts predicting much stronger results from some of the world's major car manufacturers including GM, Ford and Toyota the demand for this platinum looks set to rise. However, any downturn in the economic progress seen recently and we could easily see platinum prices falling. So what next for this precious metal?

One of the ways you can take a position on, and take advantage of the global commodity markets and the price of platinum is via CFD trading. Like any investing the greater your knowledge of the instrument you want to trade the better your chances are of success are, especially long-term. As we've seen, commodity prices can be subject to fluctuations so it's important you are aware that guaranteed stops are available on any trade you make.