The growth in platinum ETF holdings has been especially strong in North America and Europe, reflecting a growing recognition of the platinum investment case and a belief that platinum also offers longer-term value. Investors are seeing upside in platinum’s demand prospects as substitution of platinum for palladium in autocatalysts gathers pace. In addition, platinum’s green metal credentials, as the metal that can unlock the hydrogen economy, are beginning to register.
Following the strong performance of platinum ETFs last quarter and based on inflows since the end of June, net sales of global platinum ETFs experienced in the first quarter of the year have already been offset by these inflows. However, the ETF demand forecast for 2020 prepared by Metals Focus for the WPIC anticipates current trends to fall off in the final quarter of the year, resulting in net ETF demand of 160 koz for the full year.