Platinum Commodity Research Report
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Platinum Commodity Research & Analysis Report ► (edit / improve) Platinum is a by-product of nickel and copper processing. It’s commonly used to make jewelry and as a catalyst for chemical reactions. Platinum Fundamental Commodity Analysis (short term investment): Platinum is rated a buy, because the net difference between demand and supply indicates the excess demand will cause prices to increase. Platinum Value Investor Survey (long term investment): Platinum’s long term growth potential is moderately favorable due to high scores on difficulty to expand short term supply. Platinum SWOT Analysis: Strength: Platinum has a limited supply; however, a weakness is platinum’s limited sources. Opportunity to grow: platinum’s ability to be recycled will aid in future growth; Threats to growth: generally poor economic conditions could limit platinum’s growth over the short term. Platinum Trade Analysis: The commodity analysis buy rating indicates that platinum should stay the same price over the short term, whereas a moderately favorable investor survey means platinum may increase in price over the long term. For our entire list of commodities, see the Commodity Research & Analysis home page.
Investment Impacts (help)
South Africa Country & Currency Research Report ► (edit / improve) South Africa (ZAR) has a resource rich economy in Sub-Saharan Africa. South Africa's Fundamental Currency Analysis (short term investment): South Africa’s currency is undervalued with moderate investment flow potential, high purchase price potential, and interest rate parity potential. South Africa's Value Investor Survey (short term investment): South Africa’s economic environment is moderate. South Africa's General Trading Partners: China, Japan and the US are South Africa’s top export partners, while the leading industry is materials. South Africa's Commodity Trading Partners: South Africa produces a significant amount of uranium, palladium, diamonds, coal, and platinum for use domestically and especially as an export. SWOT Analysis of South Africa: The leading South African weaknesses are their high unemployment rates, discriminatory issues and HIV Aids. The World Cup has the opportunity to propel growth, while the outbreak of disease may burden the health care system. South Africa's Currency Trading Strategy: An undervalued currency, moderate investment flow potential and moderate business environment leads to a slightly positive outlook for South African investments. For our entire list of country & currency analysis, see the Country & Currency Analysis home page.
Industry Investment Impact
Discretionary Industry Research Report & Analysis ► (edit / improve) The consumer discretionary industry includes companies whose sales come from consumer discretionary income purchases. Discretionary income = gross income less taxes and necessities such as rent, mortgage and food. Discretionary Value Investing Conclusion: Based on WikiWealth's Wall Street analysis, this industry is a Hold. The Main Street analysis says a Buy, with SWOT strengths great than weaknesses and SWOT opportunities greater than threats. Discretionary Trade Hubs: Some of the main trade hubs include China, Mexico, Germany and Japan, while the main discretionary commodities include gold, silver, platinum and diamonds. Discretionary Trading Strategy: The consumer discretionary industry tends to be very sensitive to economic cycles. Look for undervalued discretionary investments during economic recessions when stock prices are low and sell discretionary investments during the late stages of a bull markets when stock prices are high. The global economy is currently in a recession, therefore, it is the perfect time to purchase consumer discretionary investments. Upward sloping stock charts and financial news may indicate a selling opportunity while the opposite means that stocks are becoming undervalued. For our entire list of industry research reports, including trends, statistics and ratios, click here: Industry Research & Analysis Home Page.
- Precious metals rely on the impact of discretionary spending.
Industry Analysis evaluates the major industry characteristics that affect investments. Company specific factors drive the performance of individual companies, but macro-economic factors can affect the performance, stock prices, growth rates, and chart movements of any stock, currency, or commodity. All stock traders should review industry research before trading.
Warren Buffett Quote: "When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact." No matter the quality of your business, industry economics is an important factor in any value investing decision.
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WikiWealth supplies the tools to create the highest quality analysis so you can make the best value investing decisions. However, we rely on users to continuously edit and improve this analysis. More minds working on a problem generates better ideas. WikiWealth professionals happily review each edit to ensure consistency and quality. Find an area to improve, click the "improve - edit" link, make your change, then press "SAVE."
Value Investing Importance?
A professional evaluations can cost between $150 to $15,000. In order to understand an investment, traders must research industry margins, stock prices, multiples, news, growth rates, stock chart, and any other relevant measurement to avoid mistakes.
| Description: The materials industry includes companies whose sales originate from the mining, acquisition and sale of physical substances for manufacturing-related purposes (see full material description: competitors, industry ratios, best stocks, market leaders, aggregate SWOT Analysis, and streaming industry news).
Profit Analysis: The best way to profit from material stock is to find the most undervalued investments (Wall Street and Main Street buy ratings) during economic recessions. Those investments should be undervalued (see Wall Street on left side), and have high Main Street Common Sense investment ratings (see Main Street on right side). When an economic recovery occurs, material stocks tend to outperform the general stock market, because consumers and businesses must increase their inventories quickly to meet demand for manufactured goods. Consumers and business delayed purchases on items they wanted, but resisted buying during tougher economic times. Eventually, material company investments become overvalued, because profits and stock prices increase past their fair values. During the last stages of an economic business cycle, just before a recession, it is best to sell material stocks, because they are likely to decrease in price the fastest. Expensive (overvalued) stocks with low Main Street Common Sense ratings should be sold at any time to invest in better stocks. Two buys ratings are the best and two sell ratings are the worst possible stock investments.
Inflation Hedge: Changes in commodity prices affect material stocks. When commodity prices are high due to increased demand or lower supply, material stocks increase, because demand for their goods also increases. Inflation occurs when the price of goods and services increases. The price of materials are generally the first inputs into the production of goods, so changes in material prices directly affect the cost of products, which is measured by inflation. Therefore, a good hedge against inflation is to own material stock investments. When inflation increases, so do the profits of material companies, which may have directly contributed to the increase in prices.
Trading Strategy: During economic recessions, consumers tend to cut back on spending to save money. Businesses tend to cut back on investments. Industrial companies make the products bought by consumers and businesses, but to make those products, industrial companies must obtain materials. Less spending on goods decreases material business revenue and eventually decreases stock prices. During economic recoveries, consumers and businesses spend quickly to replace or catch up with quickly increasing demand. Material companies quickly receive orders from industrial companies who need to manufacture new products to meet quickly increasing demand. Higher spending increases material business revenue and eventually increases stock prices. During a longer economic expansion, consumer and business demand increases for material companies, but at a slower pace than during the recovery stage.
1 WikiWealth only uses the largest 30 companies in each industry for the basis of these financial measures. Each statistic is the market weighted average of the 30 companies.
2 Investment potential (margin of safety) is a weighted average of the discounted cash flow (DCF), the enterprise value (EV) market multiple, and the Warren Buffett investment methods.
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US ETF Funds
First Trust Materials (FXZ)
iShares Materials (IYM)
Materials (PYZ)
Basic Materials (UYM)
UltraShort Basic Materials (SMN)
S&P Equal Weight Materials ETF (RTM)
Vanguard Materials ETF (VAW)
Non - US ETF Funds
Emerging Global Materials (EBM)
iShares Materials (MXI)
S&P Intl Materials ETF (IRV)
Intl Basic Materials ETF (DBN)
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Major Platinum Producers ► Press "Edit / Improve"
South Africa Country & Currency Research Report ► (edit / improve) South Africa (ZAR) has a resource rich economy in Sub-Saharan Africa. South Africa's Fundamental Currency Analysis (short term investment): South Africa’s currency is undervalued with moderate investment flow potential, high purchase price potential, and interest rate parity potential. South Africa's Value Investor Survey (short term investment): South Africa’s economic environment is moderate. South Africa's General Trading Partners: China, Japan and the US are South Africa’s top export partners, while the leading industry is materials. South Africa's Commodity Trading Partners: South Africa produces a significant amount of uranium, palladium, diamonds, coal, and platinum for use domestically and especially as an export. SWOT Analysis of South Africa: The leading South African weaknesses are their high unemployment rates, discriminatory issues and HIV Aids. The World Cup has the opportunity to propel growth, while the outbreak of disease may burden the health care system. South Africa's Currency Trading Strategy: An undervalued currency, moderate investment flow potential and moderate business environment leads to a slightly positive outlook for South African investments. For our entire list of country & currency analysis, see the Country & Currency Analysis home page.
Russia Country & Currency Research Report ► (edit / improve) Russia (RUB) is a resource rich, centralized economy with a large land mass and population. Russia's Fundamental Currency Analysis (short term investment): Russia’s currency is moderately overvalued. According to the investment flow analysis, the currency should fall, but the purchase price parity and interest rate parity predict a strengthening of the currency. Russia's Value Investor Survey (short term investment): Russia’s economic environment is very unfavorable. Russia’s economic freedom, government transparency and SWOT analysis scores are very low. Russia's General Trading Partners: China, and Turkey are Russia’s top export partners, while the leading industry is energy. Russia's Commodity Trading Partners: Russia produces a significant amount of natural gas, coal, copper, uranium, palladium, and crude oil. Russia exports many energy products to European Union members. SWOT Analysis of Russia: The leading Russian strength is their oil and gas industry, while the main weakness is political risk. Proximity to energy hungry Europe has the opportunity to propel growth, while falling oil prices may lower growth. Russia's Currency Trading Strategy: An moderately overvalued currency, high investment flow potential, but unfavorable business environment leads to a neutral outlook for Russian investments. For our entire list of country & currency analysis, see the Country & Currency Analysis home page.
USA Country & Currency Research Report ► (edit / improve) The United States (US) has a highly productive, capitalist economy and is the largest and most diverse market in the world. USA's Fundamental Currency Analysis (short term investment): the US dollar (USD) has the potential to increase in value especially versus the Australian and Canadian dollar because of the significant potential of undervalued companies. USA's Value Investor Survey (short term investment): the economic environment is very favorable for long term economic growth due to high scores on economic freedom and economic diversity. USA's General Trading Partners: China, Japan, Mexico, and Canada are the top US trading partners, while the leading export and import are electrical machinery and vehicles, respectively. USA's Commodity Trading Partners: The US produces a significant amount of coal and wheat for use at home and as an export. However, the US consumes a larger amount of oil, which contributes to their trade deficit. SWOT Analysis of USA: The leading US strength is its entrepreneurial culture, while the main weakness is high health care cost. Energy independence has the opportunity to propel growth, while the major threat is the housing crisis, which will lower growth. USA's Currency Trading Strategy: An undervalued currency, high investment flow potential and favorable business environment lead to a positive outlook for US investments, which will also benefit from positive international actions. For our entire list of country & currency analysis, see the Country & Currency Analysis home page.
What is a SWOT Analysis? WikiWealth's free SWOT analysis evaluates the strengths, weaknesses, opportunities, and threats of an investment. A SWOT analysis (misspelled SWOT analisis | SWOT analyse) is essential to understanding investment risk and rewards. SWOT Analyst: Add your improvements to the SWOT Template. See our SWOT example for help.
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The quality and quantify of SWOT statements has a direct impact on stock research ratings, and thus, company investments. A professional SWOT analysis cost a minimum of $150. WikiWealth's SWOT analysis is free and open to improve / edit.
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Common Misspellings
Common misspellings include swot analisis, analyse, analaysis, and analyisis.
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