Page 21 - Bullion World Volume 02 Issue 02 June 2022_Neat

Bullion World | Volume 2 | Issue 02 | June 2022

as early as 2033 if broad-based
commercial adoption of the
technology accelerates policy-driven
adoption.

Short-term market balance
considerations aside, global risk
concerns exacerbated by inflation
have increased platinum’s appeal
as an alternate ‘hard’ investment
asset. Platinum investment market
development initiatives continue to
Picture credit: ABC Bullion improve investor access to platinum
and WPIC is expanding its product
ten per cent, reducing to around stronger spotlight on platinum’s partnerships globally. In the Asia
six per cent the week after, still well ‘green’ credentials. The role platinum Pacific region, two new partners
above the average in 2021 of c.0.8 is playing in net-zero strategies joined us during the first quarter,
per cent. WPIC believes this spike through its use in electrolyser and both fabricators based in Shenzhen
is indicative of a shortage of readily- fuel cell technologies that can who will add platinum to their
available metal in the spot market. unlock the potential of hydrogen portfolios.
No specific reason for the shortage as a carbon-free fuel is already an
can be easily identified, but logistical appealing aspect of the investment One of the key roles of WPIC
challenges associated with the case for platinum. Now, the is to increase the number of
consequences of Russian sanctions need for energy independence is investors considering platinum as
appear likely to be the main driver. strengthening the case further. an investment asset. Raising the
Interestingly, March 2020 also The European Commission’s awareness of platinum and its role
saw elevated lease rates due to recently-announced plans to in global decarbonisation is part
COVID-related logistics disruptions, reduce the bloc’s reliance on of WPIC strategy and because
exacerbated by a refined metal Russian energy supplies could lead platinum straddles the ‘precious’
processing outage in South Africa, to rapid and significant growth in and ‘industrial’ metal markets
the major producer of platinum. electrolyser capacity – above and and end-uses, platinum’s profile
Those events triggered a 12-month beyond the expansion already has been further enhanced this
uplift in platinum prices. It appears envisaged as part of the European year with its association with The
that the combination of logistical Green Deal. Assuming this leads Wimbledon Championships 2022.
challenges and the unavailability of to the installation of 115 gigawatt Here, in honour of Her Majesty
Russian produced platinum, which of electrolyser capacity by 2030, of the Queen’s Platinum Jubilee –
accounts for ten per cent of annual which half is met by platinum-based her reign started 70 years ago
global mined supply, could lead to a proton exchange membrane (PEM) in 1952 – and the centenary of
similar price response. electrolysers, this could lead to Wimbledon’s Centre Court at
additional annual platinum demand its current site, two specially-
Separately, there is the possibility that rises to 8 t in 2030. commissioned commemorative
of China imports of platinum platinum coins are to be used
once again exceeding identifiable The ancillary benefit of hydrogen for the Ladies’ and Gentlemen’s
demand, as they did last year, when, production and distribution roll-out at singles finals coin tosses for the
primarily due to speculative and the scale envisaged is the potential first time in the Championships’
quasi-speculative purchases, these acceleration of the commercial history. Platinum’s association with
excess imports completely absorbed adoption of fuel cell electric vehicles 70-year celebrations, as well as its
last year’s entire estimated market (FCEVs), a significant component role in global decarbonisation, will
surplus. of future platinum demand growth. be brought to further prominence
Indeed, WPIC’s forecasts show as a result of WPIC’s work with
Russia’s invasion of Ukraine and that FCEV platinum demand has Wimbledon, which in 2021 attracted
the ensuing energy crisis in Europe the potential to match current a global audience of around 15.5
it has triggered has shone an even automotive demand for platinum million.

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