Precious Metals

Platinum demand forecast to increase in 2019

Most of the world's platinum supply comes from South Africa.

Platinum image at left courtesy of World Platinum Investment Council; background image courtesy of Johnson Matthey.

The platinum market worldwide in 2019 is projected to experience a lower surplus for the metal than forecast for 2018 because of overall increases in demand to meet the supply, according to the World Platinum Investment Council (WPIC).

According to the WPIC, “2019 demand growth will be driven mainly by chemical and petroleum demand reflecting economic growth, and a doubling in investment demand as a rebound in exchange-traded-funds adds to robust bar and coin demand.”

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The WPIC’s latest assessments of 2018 suggest a drop in mine supply of 1 percent from 2017, to 6,080,000 ounces, with increases in output from South Africa facilities offset by production reductions in Russia and Zimbabwe. North American production was expected to remain steady at 365,000 ounces.

Global investment in platinum is estimated at 125,000 ounces in 2018, according the WPIC’s latest projections.

“The low platinum price has maintained Japanese investors’ buying interest in platinum bars, and with the U.S. Mint raising the mintage of platinum American Eagle bullion coins, bar and coin demand is expected to improve somewhat from 2017,” according to the WPIC’s analysis. “However, with a small drop in exchange stocks likely and with ETF holdings now looking set to fall this year, the forecast for global platinum investment has been revised down to 125,000 ounces.”

The complete detailed platinum quarterly report for the third quarter of 2018 is found here.

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