Precious Metals

Prospects for platinum bullion Krugerrand fading

The South African Reserve Bank is currently not planning to require that the South African Mint produce a platinum bullion version of its popular gold Krugerrand.

Original images courtesy of Bay City Metals.

Prospects for a South African Krugerrand bullion coin struck in platinum are quickly fading.

Terence Creamer is reporting on that Daniel Mminele, deputy governor for the South African Reserve Bank, says the bank will not demand that the South African Mint produce a platinum bullion coin. Consideration had been given to a platinum coin that would be marketed in a manner similar to the way the popular gold Krugerrand bullion coin is.

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Studies are reported to conclude that the initiative for a platinum bullion coin is not economically feasible. Worldwide demand for such an issue would constitute no more than 50,000 ounces annually, compared to 1.1 million ounces for the gold Krugerrands, according to the South African Reserve Bank.

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Mminele indicates the primary stumbling block is that platinum could not be included in the bank’s reserves as, according to the International Monetary Fund, it did not qualify as a monetary asset.

Platinum and silver coins are being included in sets from the South African Mint marking the Krugerrand’s 50th anniversary.

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