Platinum price outlook is rosy, says industry group highlighting China as demand driver

The World Platinum Investment Council, backed by six of the leading producers of the silver metal, has opened an office in Shanghai to help drum up interest from institutional investors.

The council, formed in 2014 to develop investment demand, is banking on stronger prices and a favourable supply/demand outlook in 2018 to help attract financial intermediaries such as banks and institutional asset managers.

“Platinum has good characteristics, it is just not as well known as gold [as a store of value],” the council’s chief executive Paul Wilson told the South China Morning Post.

“We are meeting institutions in China with a view of bringing to the market attractive investment products [on platinum].”

Wilson said that holding platinum can help diversify an investment portfolio, and that a persistent supply deficit in the past five years that drew down stockpiles should bode well for prices.

Deng Weibin, who joined the council in July this year as head of China, said that his team has been holding discussions with financial institutions that sell gold wealth management products, exchange traded funds, physical gold and paper platinum products.