World Platinum Investment Council
PAUL Wilson has the unenviable job of promoting platinum as an investment item and forecasting its progress in the market. It’s hard to decide which is the more difficult task. Take, for instance, the World Platinum Investment Council’s (WIPC’s) efforts in anticipating the platinum supply deficit in 2015. In March, it forecast a deficit of 235,000 ounces which was then adjusted to 445,000 oz in September, before concluding in November there may be no deficit at all. Final data for the year is yet to be submitted. No deficit means little in-roads will be made on the platinum stockpile of some 2.5 million oz – one of factors depressing the dollar price of the metal. Still, at current levels (platinum was well below $1,000/oz at the time of writing) it may be possible to start making a good case for platinum as an investment provided supply from South Africa doesn’t blossom (it won’t). The importance of supply can’t be overstated as evidenced by the significant redemptions of platinum and palladium exchange traded funds after it became clear that Lonmin’s 700,000 oz contribution to the market would remain intact following its recapitalisation. On the demand side, Wilson played down the importance of the Volkswagen AG scandal saying there was as much upside as downside for the metal. Who’d be a forecaster?
LIFE OF PAUL
Wilson has an MBA from Harvard University and over 20 years in the financial services. Formerly an advisory partner at Bain & Company, he is the International Chairman of the non-governmental organisation, Action Against Hunger. Other directorships include Brewin Dolphin, an investment management and financial planning firm, and Unigestion Holding.
- Web Address: www.platinuminvestment.com