In April and May, the UK experienced a historic influx of over half a million ounces of platinum into exchange-traded funds (ETFs). This surge represents the largest addition since the initial public offering (IPO) of South Africa’s ETF on the Johannesburg Stock Exchange almost 25 years ago.
Edward Sterck, director of research at the World Platinum Investment Council (WPIC), highlighted this significant increase. “This is the largest non-IPO inflow we’ve seen into any regional ETFs,” he noted in an interview with Mining Weekly. This comes ahead of Shanghai Platinum Week, set for July 8-11.
Studies suggest platinum is an effective risk diversifier and long-term value store. Consequently, the Shanghai event will see strong representation from Minerals Council South Africa members and South African mining executives. Globally, up to $10 billion in assets are invested in platinum.
Chinese investors, who have long valued platinum for jewelry, now see it as a sensible retirement investment. The Shanghai Platinum Week 2024 is buoyed by rising platinum demand in China, driven by new investment products like the 100 g Dragon platinum bar series and a 1 kg bar from Metalor.
Last year, China’s retail investment demand for platinum, including coins and bars under 500 g, grew 37% to 52,000 ounces. Bars in the 500 g to 1 kg range added another 100,000 ounces. This year, demand for coins and bars under 500 g is expected to reach 60,000 ounces.
China, the largest consumer of platinum group metals (PGMs), lacks domestic platinum mines. Thus, having platinum on Chinese soil is seen as a strategic move. South Africa remains the biggest supplier of PGMs to China.
In the US, Johnson Matthey, a company with longstanding ties to South Africa, will join the US Department of Energy’s Critical Materials Innovation Hub (CMI). They will help shape a five-year PGMs program. This initiative, part of New York Platinum Week in September, underscores the importance of PGMs in advancing towards net-zero emissions.
PGMs are crucial for technologies like hydrogen fuel cells, electrolyzers, and sustainable fuels. Johnson Matthey will leverage its expertise to develop efficient, circular technologies for PGMs, said Marge Ryan, the company’s industrial PGM research and strategy manager, on LinkedIn.
Globally, Johnson Matthey is also involved in advocacy, holding memberships in UK government advisory councils and other international organizations.
The record inflow of platinum into UK ETFs and the rising demand in China highlights the growing importance of this precious metal. As global events like Shanghai Platinum Week and New York Platinum Week bring together industry leaders, the future of platinum as a key investment and technological component looks promising.
Source: Mining Weekly
