https://www.miningweekly.com

Investment demand for platinum in China strengthens with launch of new platinum bar

The fish-to-dragon 1kg platinum investment bar. Picture: China Gold Coin Group.

The fish-to-dragon 1kg platinum investment bar. Picture: China Gold Coin Group.

The fish-to-dragon 1kg platinum investment bar. Picture: China Gold Coin Group.

Photo by China Gold Coin Group

22nd November 2024

By: Martin Creamer

Creamer Media Editor

     

Font size: - +

The appeal of platinum as an investment asset is being increasingly recognised by Chinese investors, which is resulting in China becoming one of the most important investment markets for platinum bars and coins.

Debuted during a ceremony at the Beijing International Coin Exposition 2024 was the China Gold Coin Group’s first-ever large-size platinum investment bar – a 99.95% pure 1 kg platinum bar that carries a specially commissioned design inspired by the ‘Fish Transforming into a Dragon’ legend which is renowned in China.

China Gold Coin Group’s launch of the fish-to-dragon investment bar comes amid this year’s 34% year-on-year growth forecast to 250 000 oz, which follows demand increasing from 31 000 oz in 2019 to 186 000 oz in 2023.

A key driver of this growth is purchases of larger bullion bars, of 500 g or above.

This year’s platinum insight conference, the Shanghai Platinum Week 2024, served as a core platform for industry innovation and collaboration.

Held from July 8 to 11, the Shanghai event once again demonstrated the critical role that platinum group metals (PGMs) play.

The World Platinum Investment Council (WPIC) co-organises the Shanghai Platinum Week with organisations including the China Gold Association Platinum Committee and the Precious Metals Industrial Committee of the China Material Recycling Association. Members of the WPIC, which was established in 2014, include Anglo American Platinum, Implats, Northam Platinum, Sedibelo Platinum and Tharisa.

“The WPIC and our partners in China are unlocking the potential here,” the council’s Asia Pacific regional head, Weibin Deng, highlighted.

Supply chain improvement and rapidly escalating platinum investment awareness have resulted in what is described as “unprecedented growth in physical investment demand” for platinum.

The metal’s appeal is being bolstered by its increasing industrial applications, inclusion on the critical mineral lists of many countries, and its wide discount to gold, the latter being reflected in China Gold Coin Group’s launch of the fish-to-dragon platinum investment bar.

With an office in Shanghai since 2017, the WPIC has been positioned to provide PGMs knowledge to China, which has helped investors to make more informed investment decisions.

“Our market development activities worldwide, including the annual Shanghai Platinum Week, have been instrumental in achieving significant growth in investment demand,” WPIC CEO Trevor Raymond stated in a release to Engineering News & Mining Weekly.

In expressing delight in the uplifting of investor choice through the introduction of the fish-to-dragon bar, he said: “More broadly, this landmark occasion underscores how platinum’s appeal as an investment asset is increasingly recognised by Chinese investors.”

China Gold Coin Group is a State-owned entity that plans and coordinates domestic demand for investment metals in consultation with the Chinese Central Bank.

Last year, China Gold Coin Group included a 15 g platinum coin in its Zodiac series and earlier this year it produced 10 g and 100 g platinum bars as part of its year-of-the-dragon range.

The group’s fish-to-dragon investment bar features an artwork created by Professor Chen Nan of the Academy of Arts and Design at Tsinghua University that celebrates China’s cultural heritage.

In the artwork, the dragon has nine pictographic ‘fish’ characters in oracle bone script that transform into a mighty dragon. Oracle bone script is the earliest known form of Chinese writing dating back to the Shang Dynasty in the 1400s BC and the design symbolises the concept of self-transcendence and advancing toward life’s victories. Importantly, it conveys a compelling message on the improving fundamentals of the platinum market and the ascendant potential of investment.

Commenting on the decision to produce a large-size investment bar, Shenzhen China Gold Coin executive director Yin Xianmin pointed to the growing interest in platinum as an investment product presenting “an exciting opportunity for us. We have added our first 1 kg platinum investment bar to our range of platinum bar and coin products in response to investor demand. We believe that there is significant development potential for this segment of the bar and coin market.” Shenzhen China Gold Coin is the distributor of the 1 kg platinum bar.

Significantly, in addition to the investment sector, all current PGM uses are represented in China, where there is strong growth of the metals in the automotive, industrial and jewellery arenas and great effort is being made to ensure that futures markets are available to enable local users to hedge price risk.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

Comments

Latest News

Osisko appoints Quin to board
Osisko appoints Quin to board
6th December 2024 By: Creamer Media Reporter

Showroom

Rentech
Rentech

Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...

VISIT SHOWROOM 
SABAT
SABAT

From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 06 December 2024
Magazine round up | 06 December 2024
6th December 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.045 0.072s - 125pq - 2rq
Subscribe Now