Market development organisation World Platinum Investment Council (WPIC) in December announced that it would partner the UK’s State-owned coin company, the Royal Mint, to deliver a new range of physical platinum investment products in an attempt to stimulate investor demand, while also increasing the type and number of platinum investment opportunities available.

The WPIC, a participating sponsor of the 2017 Investing in African Mining Indaba, states that platinum is one of the rarest metals in the world, with its distinctive qualities making it highly valued across a number of diverse demand segments. “Platinum’s unique physical and catalytic properties have established its value in industrial applications, while its unique precious-metal attributes have made it a premier jewellery metal.”

Autocatalysts accounted for between 37% and 42% of platinum demand over the last five years. Platinum’s other diverse industrial uses accounted, on average, for a little over 20% of demand, over the period, while jewellery accounted for about 34%. “Investment is the smallest category and also the most variable, ranging between 2% and 11% of demand over the past five years,” the council explains, adding that the underdeveloped investment category offers the most room for improvement in terms of potential growth.

The WPIC’s partnership with the Royal Mint is the latest in a series of strategic initiatives from the council to stimulate demand, marking the Royal Mint’s first entry into the platinum bullion market. Under the agreement, the WPIC will work with the mint to develop and launch a range of bullion coins and bars to suit investor needs. Several of these products will be launched throughout 2017.

Commenting on the announcement, WPIC programme manager David Crawford said: “The Royal Mint is one of the world’s oldest and foremost authorities and issuers of bullion coins and bars, and we are honoured to be working with them.” He adds that the WPIC’s mission to increase the range of sustainable investment options available in global markets would be furthered by the introduction of the new product range, ensuring that platinum, which has historically been a store of value and source of long-term appreciation, would become integral to retail investors’ portfolios.

The Royal Mint’s bullion director Chris Howard says the introduction of platinum to the mint’s portfolio was the next logical step for the company and its customers, as it supports its ambition to provide the ‘complete bullion solution’. Further, given the significant growth in the mint’s bullion activities in recent years, Howard noted that the company is excited to enter a new marketplace and looked forward to working with the WPIC to expand its range.

The Royal Mint, a 1 000-year-old institution and the world’s leading export mint, has successfully been producing precious-metal coinage since about 900 BCE, and throughout this time, has continued to strike coins in gold and silver. With the launch of a bullion-trading site in 2014, it became the first mint to offer bullion coins and bars direct to individuals on a 24/7 basis, dispatched to the customer or stored on their behalf in the Royal Mint’s vault, a securely guarded bullion storage facility.

The WPIC was formed in 2014 to meet the growing investor demand for objective and reliable platinum market intelligence. The WPIC’s mission is to stimulate global investor demand for physical platinum through both actionable insights and targeted product development. It was created by the six leading platinum producers in South Africa, namely Anglo American Platinum, Aquarius Platinum, Impala Platinum, Lonmin, Northam Platinum and Royal Bafokeng Platinum. Its offices are located in London.

The Mining Indaba will run from February 6 to 9 at the Cape Town International Convention Centre.