JOHANNESBURG - GLOBAL platinum demand is expected to jump by 9 percent due to solid investment demand, the World Platinum Investment Council (WPIC) said in a report on Friday.
The WPIC, which stimulates demand for physical platinum, said the increase in platinum demand would likely see the annual 2019 market balance narrowing to a surplus of 345000 ounces (oz) from the previously forecast surplus of 375000 oz.
WPIC’s chief executive Paul Wilson said the report showed continued investment demand growth, driven by investor recognition of platinum's demand and price-growth potential.
“This has been supported by uncertain capital markets that have seen inflows for most precious metals exchange traded funds (ETFs) this year, of which platinum has been a stand-out beneficiary. Institutional investment demand has had an unprecedented start this year, with ETF buying of 720000 oz in the first half of 2019,” said Wilson.
Wilson said the unprecedented 855000 oz of investment demand in the first half of 2019 was driven by a surge in ETF holdings, which gained 720000 oz.