South African investors have expanded their platinum ETF holdings by 430 koz in 2023 to date as they see an attractive upside for the precious metal, which is forecast to be in deficit by almost 1 Moz.
Whilst North American and European investors have continued to dispose of their ETF holdings, South African platinum ETF buying has now accelerated beyond expectations, according to the World Platinum Investment Council. Its latest Platinum Perspectives report shows that Q1 and Q2 of 2023 were dominated by inflows of +160 koz and +280 koz respectively – reversing trends of outflows for the previous six quarters.
With South Africa the world’s biggest producer of Platinum Group Metals (PGMs), investors located in the country could be regarded as amongst the most informed in the platinum market, and more acutely aware of the potential impact of the forecast deficit.
Platinum ETF investment flows have also been positive in the United States and Japan in this quarter to date, whilst the UK is also showing signs of moving into positive territory.
Read the full report here.