Retailers see 'Lowest Platinum Rates' as Golden Oppurtunity

Platinum prices tends to be as much as double the gold prices but for some time now the platinum prices have been fallen down. The 23rd edition of Platinum Quarterly report commissioned by World Platinum Investment Council (WPIC) published on 18th May 2020 says, “While the COVID-19 pandemic has had a major negative effect on the platinum market including price, demand and supply - the results for Q1 2020 show the net effect is less than feared, and the outlook for 2020 is better than expected.”

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It also says that the platinum price fell together with that of most equities and metals during March; suffering falls of between 10 per cent and 35 per cent. Platinum demand in China reduced early in the quarter. However, a smelting process failure in South Africa, unrelated to the pandemic, as well as mine closures to reduce the spread of the virus significantly reduced quarterly platinum supply.

Total demand in Q1 2020 declined by 5 per cent (-94 koz) to 1,649 koz from the previous quarter. Meanwhile, total supply decreased by 19 per cent (-410 koz) to 1,773 koz from Q4 2019. This resulted in a surplus of 124 koz for Q1 2020.

WPIC now forecasts that 2020 will have a surplus of 247 koz, which is only 128 koz higher than its previous forecast despite the impacts of COVID-19. Demand in 2020 is expected to be 18% lower than in 2019 mainly on weak automotive and jewellery sales and lower investment demand. Supply is forecast to be down 13 per cent, year-on-year, on the material impact of the smelting outage and pandemic related mine stoppages.

Current platinum price is ‘Life Time Opportunity’

“Platinum is a differentiated metal and our consumer picks platinum for its inherent unique qualities. It is rare and our audience appreciates that says,Vaishali Banerjee, Managing Director, PGI India.