In 2021, global demand for platinum bars and coins is expected to reach 436 koz, a 26 per cent, or 150 koz, reduction on the exceptional prior year. This forecast, made earlier in the year, takes into consideration the material, year-on-year increase in the platinum price in the first quarter of 2021 of 30 per cent, which led to some profit taking in Japan. It also includes the expectation that the US Mint would produce only 35,000 platinum Eagles as they had stated, rather than the 75,000 now issued. Investor enthusiasm for platinum appears more buoyant than the forecast originally anticipated, as does the interest shown in the market by providers of platinum investment products.
Demand for precious metals as a hedge against global risk remains elevated, while platinum is attracting investors recognising its industrial uses and the upside emanating from the boost to consumption that fiscal stimulus programmes around the world are generating. Platinum investment demand, for bars and coins as well as physically backed platinum ETFs, is being enhanced further by platinum’s constrained supply, growth in automotive usage and platinum’s strategic role in applications core to establishing the hydrogen economy.