By Matthew Cowley
LONDON--Six of the world's major platinum producers have banded
together to drum up interest in the precious metal as a financial
investment.
The World Platinum Investment Council aims to develop an active
investment market for platinum and make it easier for a "wide array
of investors around the world" to invest in the precious metal, the
group said in a statement.
Demand for platinum, unlike gold and silver, is driven largely
by industry, rather than by investors and the jewelry sector. The
metal has a wide use of applications, from emission-reducing
catalytic convertors in motor vehicles to fuel cells and chemicals
production.
With global economic growth proving increasingly sluggish,
platinum prices have fallen around 12% so far this year to around
$1,200 an ounce whereas gold prices, trading around the same level,
are little changed in the same period despite falling sharply from
mid-year highs.
The WPIC is funded by Anglo American Platinum Ltd., Aquarius
Platinum Ltd., Impala Platinum Holdings Ltd., Lonmin PLC, Northam
Platinum Ltd. and Royal Bafokeng Platinum Ltd. The mining companies
are all based in South Africa which is responsible for roughly four
fifths of global platinum output.
According to the WPIC's web site, there are some $10 billion in
assets already invested in platinum.
"To date, the investment potential of platinum has been largely
overlooked," said Paul Wilson, the WPIC's chief executive officer.
"Platinum's performance as an investment asset over the past 20
years supports this thesis."
Mr. Wilson was an advisory partner at management consultancy
Bain & Company with responsiblity for its UK financial services
practice, and is also chairman of XL London Market Ltd and a
director of Brewin Dolphin Plc.
The WPIC said it aims to attract the full spectrum of the
investment community, including institutional investors, wealth
individuals and mom and pop investors.
The body will hire "independent specialists to provide regular
insightful data and analysis" on the platinum market, according to
the statement.
Write to Matthew Cowley at matthew.cowley@wsj.com
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