[miningmx.com] – THE platinum market was too small to support the metal’s use as a reserve asset, said Reuters citing the views of Matthew Turner, analyst for Macquarie.
“China has $3.7 trillion of foreign exchange reserves. To keep 1% by value in platinum, at $1,000 an ounce, would need 37 million ounces of platinum, which is six years’ mine supply,” Turner told Reuters.
The World Platinum Investment Council and the platinum producers that support it, have been pushing to have the South African Reserve Bank consider adopting platinum as an asset – a request reviewed and rejected by the bank.
“The gold market is much larger and has a deeper history as a financial asset due to the “gold standard”, under which currencies were pegged to a specified amount of bullion,” Turner told the newswire service.
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