Platinum Weekly: Expect More Upside On South African Supply Uncertainty

London (Sept 26)  PLTM has rebounded well since we published our previous weekly update, reflecting positive tailwinds from broad-based upward pressure across the precious metals complex and supply tightness fears in South Africa.

We see further upward pressure in PLTM for the rest of the month because the macro backdrop favours the precious metals space, thereby resulting in strong investment demand for platinum, while the micro backdrop is conducive to a firmer platinum price due to a rising probability of supply disruptions in the world’s largest platinum-producing country.

Our September high forecast is at $10.00 per share, representing roughly a 6% upside from its current level. 

Source: Trading View, Orchid Research

About PLTM

PLTM, which was created in January 2018, is directly impacted by the fluctuations of platinum spot prices because the fund physically holds platinum bars in a London vault and custodied by ICBC Standard Bank.

The investment objective of the GraniteShares Platinum Trust is to replicate the performance of the price of platinum, less trust expenses (0.50%), according to the official Graniteshares’ website.

The physically-backed methodology prevents investors from getting hurt by the contango structure of the platinum market, contrary to ETFs using futures contracts.

Also, the structure of a grantor trust protects investors since trustees cannot lend the platinum bars.

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