“Most of the bearishness in the short-term price performance is driven by factors other than fundamentals

Investment

Both platinum and palladium exchange traded funds (ETFs) grew during 2014, recording growth of 155 000 and 940 000 ounces respectively – driven mainly by South African funds. But there has been little movement during the first half of 2015, with an increase of only 50 000 ounces of platinum since the beginning of the year and palladium 86 000 ounces lower.

On the paper markets, the gross long interest for platinum on the NYMEX has dropped to its lowest level since November 2014. The gross long interest in palladium has followed suit. In contrast, short interest in both platinum and palladium has climbed into record territories – highlighting that investors are not impressed with the performance of prices in the short term.

To this end and to increase transparency on platinum investing, Implats and the other South African platinum producers launched the World Platinum Investment Council (WPIC) in 2014. The aim is to stimulate investor demand for physical platinum. The WPIC will provide investors with information to support informed decisions regarding platinum and will work with financial institutions and market participants to develop the products and channels investors need.