Platinum, copper, silver: Three Musketeers

With gold hogging all the limelight during the past one year, all other metals are being given a step-motherly treatment by investors. But, do that at your own peril.

Because, gold has all the glitter and glory but the real money lies in other metals. Among them three most important ones are platinum, copper and silver.

As everybody knows, gold has touched record prices in the recent past especially when it crossed $1,200 easily last week. Still, the rewards lie in other metals.

Take the case of platinum. Platinum’s price premium over gold has recently been shrinking, but platinum should continue to prevail, because it’s one of the rarest precious metals.

Platinum prices have climbed more than 36% from their low in early July to trade at highs above $1,500 an ounce, levels not seen in 15 months. A possible drop off in industrial demand is the major hurdle that platinum is facing, as growth in Chinese jewellery demand may not be enough to make up for the sluggish market. Any rebound in the auto industry, however, could pick up the slack.

Another metal in focus is copper. Copper prices have rallied to a 13-month high on a sliding dollar and Japan’s economic expansion. Copper made up 54% of the total value of Chile’s exports in October, up from 42% the same time last year. And, to add to that China is expected to account for 38% of the world’s copper demand by 2014, up from 28% in 2008.

In the case of silver also prices are set to go up in a big way. Silver prices have soared nearly 70% this year, compared with a 30% gain in gold prices. Despite the run-up, silver prices are actually 12% lower than a year ago. Nevertheless, investment demand is forecast to continue to prop up metal prices while industrial and jewellery silver consumption may remain weak this year.

These three metals look like good investments for the coming years. With news that gold is going out of fashion, especially in the wedding industry, other precious metals are set to take the lead. Platinum wedding rings and platinum engagement rings are the new trend, so investors should be looking to get involved in the platinum industry and benefit from its new popularity.