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Fidelity EMEA fund manager talks up platinum as alternative hedge to gold
Investment house Fidelity has been talking up the merits of platinum as an alternative inflation hedge. The group’s EMEA Fund manager, Nick Price, said that an imbalance between supply and demand could make platinum a more attractive proposition to investors than gold and therefore a better inflation hedge.
Both platinum and gold are positively correlated to inflation and therefore offer some protection against inflation, but Fidelity is favouring platinum in the longer term because of its use in industry, primarily the car manufacturing industry.
Although the car industry has been one of the major casualties of the global recession, Fidelity believes that on a longer term view stimulus packages and an increase in demand for cars in developing countries will boost production and therefore fee through to platinum prices. He said: ‘In the short term government stimulus for the auto industry are helping underpin demand.
‘Longer term, car ownership in developing countries, in particular in China and India is growing rapidly.’
Investors can buy platinum via shares in miners, or funds with exposure to the trend. Alternatively, those looking for direct exposure to the price can buy platinum via exchange traded commodities.
via Five alternatives to gold to hedge against inflation | Personal Investor | Citywire.
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