Arguably, many traders will say that Gold is the best precious metal to invest in 2020. But what if I will show you other precious metals with fantastic investment opportunities in 2020.
Today we will analyze five precious metals and conclude on who gets the title of the best metal to invest in 2020.
We will use common sense and technical analysis for our five candidates. If you’re new at investing in precious metals or commodities, click HERE for a comprehensive guide.
Can Gold be The Best Precious Metal to Invest in 2020?
Gold prices have declined on February 20, from the amount of $1346,64/oz to the lowest $1281,26/ozon March 07. That said, gold had a perfect bull run from September 2018; the lowest price was $1181, 06/oz and the highest at $1283,89/oz.
The volatility nowadays is mostly because of unclear US and China traded balance and Brexit. Also, the same negative effect was upon the Australian dollar and the Swiss franc. For a better understanding of Gold correlation with the Australian dollar and Swiss Franc, click HERE.
Using MACD in our analysis, we can see a slight decline in the daily chart; while Ichimoku clouds form a bullish trend. Look at gold’s behavior for the past six months; the correction expected at the price of $1285,15.
Also, it is safe to assume that gold will continue its uptrend with small corrections. So, does gold look like the best precious metal to invest in 2020?
Next Candidate is Platinum
Platinum had a solid run from August 2018; it deserved to be selected as one of the best precious metal to invest in 2020.
The lowest price for platinum was $757,34/oz and the highest today at $889,40/oz. That said, what’s interesting with platinum is the low volatility in the past six months.
It is a safer trading alternative Vs. Gold but it is not so rewarding. The same technical analysis was applied, and the founding is not so surprising for platinum prices. MACD signals an increase in demand for platinum and Ichimoku clouds are confirming the uptrend.
Also, a correction is to be expected at $834,63/oz with possible new lows at $811,13/oz. That said, platinum is closer to be crowned as the best metal to invest in 2020.
Third, On Our Watch List is Silver
Many traders will disagree that silver deserves a spit among the best precious metal to invest in 2020, but it's past and present performance might surprise you.
The lowest price for silver got recorded in November 2018 at $13,91. Since then it kept trending higher every month with the highest price at $16,20 in February 2020.
Silver is testing the support at $14, 95, and by the end of the week is expected to follow its uptrend.
Interesting is the fact that MACD shows a negative volume trade and Ichimoku clouds are forming at the price of $15,62. If silver penetrates the support at $14,95, the price can drop at the other support of $14,61.
The price corrections are necessary for confident traders that are looking for long-term investments.
Is Palladium a Precious Metal?
Palladium is a commodity but not a precious metal; the reason for adding it to our list of candidates is because of the increase in demand.
In 2017, the price was at 2,173 units and increased for the past two years to 2,332 units in 2020. You might say ok, so what is the big deal? How can Palladium be the best metal to invest in 2020?
The answer is simple: palladium is used in catalytic converters; the same catalysis used for cars that reduce harmful emissions of 90%. That said, more cars are built every year with the increase of the world population; more palladium will get used for catalysts.
Therefore, the imminent increase in demand with expectations of the process to reach its $3,429 by 2022. As a result, after hitting its highest point of 65,081 units in March, palladium started to fall and meet the correction at 53,701 units.
Technical Analysis for Palladium
That is to say, MACD shows a negative trade volume with prices expected to drop at 53,701 units.
If prices fall to the second support line at 48,456 units, then reversal will follow.
The reason for palladium to stay overpriced implies China’s six emissions legislation for 2020 and hence the correction.
Ichimoku clouds are forming above the resistance of 59,497 to 59,650 units; such level it’s expected to be traded in the next few months with moderate volatility.
Concluding the analysis of Palladium, we can assume that we can consider it as the best precious metal to invest in 2020.
Last but Not Least its Rhodium
Not many have heard or traded Rhodium, but I’m here to tell you that it’s another candidate for the best precious metals to invest in 2020.
Rhodium's among the world’s rarest and most valuable precious metal with a current price of $3,030/oz. Flashback from February 2018, prices were at 128,24 units, and the highest recorded ever on March 15, 2019, at 298,25 units.
Units? What does that mean in dollars? Well, the highest value for Rhodium was $3,325.
The price declined fast on 28 March 2019 at $3,025 and pivoting now at $3,030 with signs of the uptrend from both MACD and Ichimoku clouds.
Concluding our Analysis
The winner for the title of The Best Precious Metal to Invest in 2020, goes.
I will let you decide!
From an investment point of view, all five deserve to be in your portfolio based on historical data and present performance.
For me, Palladium is the perfect pick from the five as The Best Precious Metal to Invest in 2020.
Like always, I wish you all Happy Trading and Every Success!