A global commodities expert has been to Jersey to give an insight into the precious metals markets of platinum and palladium. Leon Westgate from Standard Bank, London was invited to the island by online precious metals trader, GoldMoney.
Martyn White, Head of European Business Development, GoldMoney hosted the lunchtime seminar which was aimed at giving potential investors and their intermediaries insight into what is driving the markets.
Supply is very regional, said Leon Westgate, “Russia dominates global palladium supplies and the Ukraine situation is causing some concern there. Meanwhile, South Africa dominates platinum mining and with the mine strikes we have already lost around 7% of the global annual output. The interesting fact is that prices have not moved much despite these supply concerns and that tallies with our conclusions that there was more above ground stocks than had been estimated. However we expect both markets to remain tight and in particular palladium prices could rise in the next two years.”
Guests heard how the two metals are traded differently to gold as they are seen as semi-industrial. “Palladium in particular is used in the auto-catalyst industry which uses around 65% of stocks and jewellery demand is still relatively small. Platinum however, although also used in industry, has a larger percentage going to jewellery, around 30%. We expect the demand from China for platinum in jewellery to increase and this will mean the platinum market will start behaving more like gold.”
In answer to a question from the audience with regard to a precious metals portfolio, Leon Westgate said: “Including some silver, platinum and palladium is a way of getting industrial exposure without having to get your hands dirty with industrial metals.”
Gold, Silver, Platinum and Palladium can all be bought online through GoldMoney. The Jersey based company has 22,000 customers worldwide and manages $1.4billion of precious metals in its partner storage vaults in five different countries. All the investment grade physical metals are regularly audited and fully allocated to customer holdings.
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