A wave of "Platinum" again (middle)

Platinum ETF and ** Investment Changes

Sources: CFTC, ZKB, ETF Securities, JB, EcoWin

3. Automobile demand and investment jointly push up the price of platinum. According to the report of Johnson Matthey, total platinum demand will reach 235.1t in 2010, up 11%. The main driving force for demand is the catalyst for automobile exhaust gas purification. Platinum production in South Africa, Russia, and Zimbabwe was basically the same as in 2009, at 186.9t. At the same time, due to the increase in recycling volume in the automotive and jewellery industries, supply and demand are basically balanced.

As the new platinum investment in the United States has been warmly welcomed by investors, the increase in ETF holdings has played a significant role in the rise in platinum prices.

3.1 Automobile output bottomed out The proportion of European diesel car sales began to recover, while sales rose, increasing the use of platinum in the automotive sector. The recovery of the global economy is conducive to the export of Japanese cars. The United States has installed platinum catalysts on heavy-duty diesel engines. Global emissions regulations have become stricter, which will increase the demand for platinum group metals. Catalysts Johnson Matthey expects total platinum demand for automotive exhaust gas purification catalysts to increase by 37% to 92.8 tons in 2010.

According to statistics, the global automobile production in 2010 was close to 74 million vehicles, an increase of over 23% compared with 2009. Demand for emerging markets continues to grow. Demand for cars in the developed markets has improved, and the global automotive industry is gradually recovering and recovering from the effects of the economic downturn. Investment confidence in the auto industry resumed. In 2010, the number of autos and related companies successfully listed and the number of related companies increased significantly. The auto manufacturing, parts, and retail sectors accounted for more than US$20 billion in 2010, second only to insurance and banking. three.

In 2010, the cumulative production of US automobiles was 7,734,539, up 35.47%. The cumulative production of passenger cars was 2,732,212, up 24.44%; the cumulative production of light trucks was 3,381,560, up 43.61%; the cumulative production of medium and heavy trucks was 132,283, up 10.40%. In 2010, the United States sold nearly 11.6 million new vehicles in the year, an increase of double digits, becoming the largest increase in US auto sales since 1984. General Motors predicts that in 2011 the US automobile industry will sell 13 to 13.5 million cars.

In 2010, the cumulative production of Japanese cars was 7,934,057, an increase of 21.32% over the same period of last year. The cumulative production of passenger cars was 1,257,293 units, up 3.78%; the cumulative production of commercial vehicles was 1,071,896 units, up 23.01%. Japan’s auto production rose for the first time in three years, mainly due to the promotion of the subsidy policy for eco-friendly cars and the increase in exports to Asia and the United States. Various automobile manufacturers promote automobile sales by successively investing in hybrid vehicles and saving small cars.

Affected by policies such as purchase tax concessions, China’s vehicle production in 2010 maintained its momentum of rapid growth. According to statistics from the China Association of Automobile Manufacturers, China's auto industry again achieved good results. The annual production and sales of autos were 18.6247 million vehicles and 18,016,900 vehicles, which were a year-on-year increase of 32.44% and 32.37% respectively. Production and sales reached a record high, setting a new record. At present, China has surpassed the United States and Japan for the second consecutive year to become the world's largest global automobile sales volume.

3.2 Rising demand for jewellery The decline in jewellery demand and favorable economic environment has boosted the demand for platinum in the industrial sector. In 2010, it is estimated that the increase will reach 50%. Among them, the platinum demand of the catalyst produced will increase by 55% to 14t. The glass fiber industry and LCD have a relatively rapid development and increase the demand for platinum. Consumer confidence has risen and demand for electronics has been driven. Platinum has increased its use of hard drives.

Due to the low price of platinum last year and the abundant inventory established by jewellery manufacturers, the high platinum price this year has affected the demand of the jewelry industry. China's retail market is more sensitive to prices. When raw material prices reach 350 yuan/g or more, coupled with high processing fees, platinum jewelry demand is suppressed, and total demand is estimated to be reduced to about 50 tons. Due to the economic recession in Japan, consumers have reduced their spending and spending on fashion platinum jewelry has decreased.

3.3 New ** release leads to increased ETF holdings Platinum ETF investors provide the same investment attributes as gold, and also provide investors with related investment in the industrial cycle. The precious metal ETF products are diversified by investors to achieve a portfolio of assets. Effective tools to reduce overall risk.

ETFSecurities Company issued Platinum and Palladium ETFs on January 8, 2010, and was listed on the NYSE High Growth Board, enabling investors to obtain more choices in the area of ​​precious metal investment. Platinum and palladium ETFs are hotly sought after by the market. Once again set off a wave of investment in precious metals. Within a short period of 4 months, the total value of the spot platinum ETF held by the company has exceeded US$575 million, and the spot palladium ETF has also reached US$380 million. As of May 14, 2010, the New York Platinum ETF has soared to 335 thousand ounces since its initial release.

In the first five months of 2010, global platinum ETF holdings continued to increase. In mid-May, platinum ETF holdings reached 1.043 million ounces. This is mainly because New York’s platinum-palladium ETF is continuously supported by investors. After June, the behavior of investors gradually became more rational. Affected by profit taking, the platinum ETF experienced a net outflow in July. There was little volatility in the holding of platinum ETFs from August to September. In October, the platinum ETF increased its holdings again due to the increase in the price of gold. By the end of October, the total holdings of global platinum ETFs have increased by 52,300 oz to 1.0521 million ounces. As of November, the global platinum ETF holds 1,117,700 ounces (34.8 tons), an increase of 64,100 ounces from the previous month. The UK ETF holds 386,500 ounces, an increase of 15,500 ounces; the US ETF holds 363,000 ounces, an increase of 29,600 ounces; Zurich Bank holds 321,400 ounces, an increase of 6,200 ounces.

On October 22, the EMF Securities Company launched a package of precious metals ETFs to be listed on the NYSE. Gold, silver, platinum and palladium are combined in four precious metals, codenamed GLTR. The listing of the precious metal ETF and the separate gold, silver, platinum and palladium ETFs on the NYSE will provide investors with more personalised options. In recent years, the popularity of ETFs supported by physical precious metals has become more and more popular around the world. Investment in ETFs has become an important means for people to invest in precious metals.