Thanks to a new partnership between the World Platinum Investment Council (WPIC) and BullionVault, physical platinum can now be traded via a low-cost online marketplace that is open 24 hours a day, seven days a week.
Under the partnership, BullionVault, the world’s largest online precious metals marketplace for buying, selling and storing physical gold and silver bullion, has added platinum to its offerings. According to a March 14 press release, private individuals will now have access to vaulted platinum at the same costs currently paid by institutional investors.
“The launch represents a new easy access, cost-effective and secure way for investors to purchase, store and sell physical platinum, targeting ‘pent-up’ investment demand for the metal,” Marcus Grubb, director of market development at the World Platinum Investment Council, told the Investing News Network.
The WPIC has been working closely with BullionVault for the past six months to add platinum to BullionVault’s online marketplace. Grubb said the move was driven by the fact that the WPIC has seen considerable investor demand for platinum in the markets in which it operates.
“Adding platinum to BullionVault’s online marketplace now is particularly timely given the ongoing deficits in the physical platinum market and the price beginning to show modest signs of recovery,” he explained.
The platform will give investors the ability to buy platinum in the form of London Platinum and Palladium Market Good Delivery bars. These bars are assayed to be 99.95 percent pure platinum or better, and are vaulted in London.
“Physical platinum has to date been difficult for private investors to trade efficiently. With platinum currently priced at a historic discount to gold, what has always been an interesting area for development has become compelling,” said Paul Tustain, founder and chairman of BullionVault, in last week’s release.
BullionVault has seen more than 65,000 private investors from around the world invest in gold or silver through its marketplace, and its current holdings are in excess of 37 tonnes of gold and 650 tonnes of silver. All of that metal is stored and insured in specialist facilities.
So far, investors have reacted well to BullionVault’s foray into platinum. Adrian Ash, head of research at BullionVault, commented, “[i]t’s early days, but BullionVault users have received this week’s launch of platinum very well.
“We believe BullionVault can attract and grow platinum investing demand, because trading wholesale bullion in secure storage halves the dealing cost for all physical platinum investors, and it removes the 20 percent VAT sales tax for European buyers,” he added.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.