Page 22 - Bullion World Issue 11 March 2022_Neat

Bullion World | Issue 11 | March 2022

2021 because of work in progress with the inventory
issue, but you need to think of mining supply and
platinum being relatively stable over time.

The demand side is interesting and we think there is
considerable demand, growth potential worldwide for
platinum and one of the issues is in the automotive
sector and heavy-duty diesel trucks. We think there's
huge potential in China for the loadings on those trucks
to increase.

Mr. Nikos Kavalis
Managing Director Singapore, Metals Focus

Metals Focus: Update on global
precious metals markets

Overall supply-demand positive picture for us, is around
the hydrogen economy. Hydrogen is likely to contribute
massively to de-carbonization worldwide. Platinum is
an essential component in producing green hydrogen
and electrolytes. And it's also an essential catalyst in
fuel cell electric vehicles to convert green hydrogen
into electricity and to drive vehicles. So, we think the
potential over the next few years will be massive on the
demand side. We will have booming ETF demand also
worldwide for platinum.

There has been a massive amount of additional platinum Source: Metals Focus, Bloomberg
imported into China over the last two years. Nearly 1.4
million ounces has gone into the China Market with
unexplained consumption. We think that these higher The geopolitical events happening tend to have a
heavy-duty loadings of probably have something to do short-term impact and eventually we will return to the
with that end additional demand. traditional macro factors. In a couple of weeks, we may
have liquidation/correction. The US inflation recently
The Nymex stocks, chart is now being liberated and the reached levels, not seen since the 1980s, a multitude
part being reduced to fund the transfers to the China of factors has contributed to this. They are supply
market. So, China is driving a massive consumption chain challenges in the aftermath of the pandemic,
boom in platinum and we think that therefore the tight labour shortages and an unprecedented combination of
market is supporting price and we think that going monetary and fiscal stimulus to fight off the impact of
forward with the boom, that's coming in the hydrogen covid on economies keeping consumption levels high
and the green economy. Time looks pretty good, for with fueling asset price.
platinum going forward. So, we're very enthusiastic &
very optimistic.

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