Platinum council backs Japan’s ‘Fruit of Platinum’ sweet spot

JOHANNESBURG (miningweekly.com) – Following May’s move to boost platinum bar and coin availability globally, the World Platinum Investment Council (WPIC) on Thursday threw its promotional weight behind investors in Japan’s flourishing ‘Fruit of Platinum’ exchange traded fund (ETF).

The tie-up is the latest in a series of strategic initiatives by the WPIC, which was established two years ago by South African platinum mining companies Anglo American Platinum, Aquarius, Impala Platinum, Lonmin, Northam and Royal Bafokeng, to stimulate global investor demand for physical platinum.

In May, the council struck up a partnership with Swiss refiner Valcambi to boost platinum bar and coin availability across Asia and Europe, an initiative that followed WPIC being approved as a member of the Singapore Bullion Market Association and the earlier striking up of an exclusive agreement with Rand Merchant Bank of South Africa to extend the availability of the Bullion Coin Custodial Certificate, which provides investors with a cost-effective method of owning platinum coins.

Now, its promotional prowess is being lengthened to the Japanese platinum ETF market, which grew by an additional 70 000 oz last year and where the Tokyo Stock Exchange-listed 'Fruit of Platinum' is advancing promisingly under the trusteeship of Mitsubishi UFJ Trust and Banking Corporation.

“We look forward to working to increase awareness about the merits of platinum as an investment,” said WPIC market development director Marcus Grubb.

Retail investors are able, through securities brokers, to trade the ‘Fruit of Platinum’ ETF, which forms part of the 'Fruit of Gold' series that grew from 2.7-billion Japanese Yen at the start of last year to 9.5 billion Japanese Yen by year-end. Total growth in the period was 350%-plus and, as of July 4, assets worth 10.3-billion Japanese Yen were under management.

Grubb, a former World Gold Council investment strategy MD, made the point in a release to Creamer Media’s Mining Weekly Online that broadening platinum’s investor base through targeted niche development was critical to the long-term success of the global platinum market as a whole.
Recent collaboration between WPIC and Valcambi – which produces bars and coins at its precious metals operation in Switzerland – resulted in improved platinum bar and coin availability and sales in Asia and Europe.

Since the partnership, WPIC has been acting as Valcambi’s funding, stocking and marketing partner, using the precious metals refiner’s networks to increase the availability of retail platinum bar and coin products to investors.

Minting in sizes ranging from 1 g to 1 000 g, Valcambi sells through online and high street dealers worldwide, with the initial focus on the US retail market, where considerable demand for physical platinum products is apparent.

Through the partnership, a wider variety of bars and coins are on offer through what is described as a “very competitive premium and narrow bid/offer spread”.

Prospective investors are also being given insight into platinum investments that suit their investment needs.

Valcambi CEO Michael Mesaric said in May that increased platinum product availability could translate into a demand of 50 000 oz to 100 000 oz of additional platinum a year.