| Markets | |||
|---|---|---|---|
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| TSXV | 647.33 | +15.54 | |
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| Commodities | |||
|---|---|---|---|
| Gold | 1827.54 | 0.00 | |
| Silver | 21.15 | 0.00 | |
| Copper | 3.74 | 0.00 | |
| Palladium | 1879.51 | 0.00 | |
| Platinum | 911.26 | 0.00 | |
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| USDGBP | 0.8154 | +0.0001 | |
| USDAUD | 1.4391 | -0.0093 | |
| USDJPY | 135.19 | +0.02 | |
Platinum Surplus to Shrink 10 Percent in 2019: WPIC
Global platinum supply is set to outpace demand, albeit marginally, increasing by 1.6 percent in 2019, the World Platinum Investment Council (WPIC) estimates in its latest Platinum Quarterly report, published on Wednesday (November 28). Meanwhile, demand will climb 2.4 percent.
The WPIC’s global forecast for platinum in 2019 reveals a market surplus of 455,000 ounces, which would be 10 percent lower than the surplus of 505,000 ounces seen in 2018.
“2019 looks encouraging based on continued demand growth for platinum in industrial and a rebound in investment. We believe more ETF investors find platinum’s widening price discount to palladium and rhodium interesting,” stated Paul Wilson, CEO of the WPIC.
On the demand side, there are expectations that many of the positive trends from this year will continue into 2019, such as the downtrend in automotive demand slowing but not totally reversing, and continued demand for industrial applications.
The main catalyst for demand growth in 2019 will come from chemical and petroleum demand, and a doubling in investment demand as a rebound in ETFs adds to ever-growing bar and coin demand.
“Demand for bars and coins in 2018 has shown a strong trend, at 210,000 ounces year-to-date, up 45 percent year-on-year, which we believe has been aided by our product development efforts, and platinum’s significant discount to gold,” Wilson noted.
Despite the 2019 demand increase predictions for the precious metal, challenges still remain within the automotive sector. European diesel popularity continues to decline on negative consumer sentiment, driven by uncertainty regarding the restrictions on diesel cars within various European cities.
The WPIC claims that automotive demand will continue to move in a downward motion next year, but at a slower rate.
“Economic and supply concerns argue strongly for automakers to consider a partial switch from palladium to platinum. Though technological development and certification may pose switching costs, these are probably more than overcome by the current palladium price premium over platinum.”
Additionally, the group notes that recycling platinum supply growth will grow at 1 percent year-on-year in 2019, thanks to additional autocatalyst supply, which will offset weaker jewelry recycling.
Circling back to the current state of platinum in 2018, the WPIC predicts that mining supply will dip 1 percent from 2017 as the year comes to an end.
South Africa’s platinum production increased by 15,000 ounces this year, but was offset by a decrease in output from Russia, which was driven by various operational disruptions that occurred last year.
The WPIC has updated its 2018 platinum supply and demand forecast, raising the surplus from 295,000 ounces to 505,000 ounces, primarily on weaker jewelry demand.
Global demand for platinum is expected to fall by 4 percent by year-end.
“Industrial demand is up 8 percent, driven by an 85 percent year-on-year increase in demand from petroleum, and a 19 percent increase in demand from glass. The expected rebound from petroleum comes after a weak 2017, on the back of refinery capacity shutdowns in Japan that have now passed,” the WPIC says.
Extensive growth in Indian jewelry demand was able to partially offset the significant decrease in consumer spending and competition from low-carat gold jewelry in China. The WPIC estimates that jewelry demand will be down by an expected 2 percent at the end of 2018.
“2018 is proving to be a tough year for platinum as our Q3 report shows, especially as the automotive sector remains subdued. However, we believe we can look forward to a number of promising trends in 2019,” Wilson concluded.
As of 12:25 p.m. EST, platinum was down 1.56 percent, trading at US$818 per ounce.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.
Golden Predator and the Yukon Mint™ Unveil First Gold Coin
Golden Predator Mining (TSXV:GPY) and its subsidiary, the Yukon Mint™, revealed their first gold coin at a company event last Wednesday (May 30).
The coin will be part of a limited annual series of First Nations art that will appear on the obverse side of the coin, Golden Predator announced on Tuesday (June 5).
The 2018 Kaska “Keda” (Dene for “moose”) 0.9999 gold coin depicts the winning artwork of Kaska Nation artist Miranda Lane on both 1-ounce and half-ounce gold coins. They will have a limited edition run and will be available for sale on National Aboriginal Day (June 21).
“Gold from the Golden Predator 3 Aces project bulk sample is incorporated into the coins and a percentage of the net profits from the sale of the coins will be shared with the Kaska Nation,” Golden Predator said in a press release.
“The bulk sample material was processed at the company’s test facility using water and gravity only, without the use of chemicals,” the company added.
In addition to First Nations artwork, the coin will feature an iconic image of the Klondike Gold Rush on the reverse. The inaugural mintage has been limited to 180 1-ounce and 140 half-ounce gold coins. In order to ensure the authenticity of the coins, each one has been engraved with a security feature.
The selected artwork by Lane was based on her original work titled “True North Moose,” and depicts how the moose is honored for all the gifts she provides for her people.
“The Moose represents hunting, food nutrition, community, sharing, kindness and survival and is found in the North of the medicine wheel, with North representing the place of wisdom. The sun, moon and trees represent the reciprocal arrangement we all have with Mother Earth,” said Lane.
As for the iconic image linked to the Yukon, the company revealed, “that speaks to the history and entrepreneurial spirit of exploration. The Klondike Gold Rush was an epic journey to an uncharted land in search of adventure and opportunity in the continent’s final frontier.”
Gold Predator added, “it seared the word ‘Klondike’ into the collective consciousness of a generation. This everlasting iconic image is further celebrated with its depiction on the reverse of all Yukon Mint™coins.”
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Golden Predator Mining is a client of the Investing News Network. This article is not paid-for content.
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