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Despite COVID-19, China doubles platinum purchases in Q1

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(Kitco News) - Platinum purchases more than doubled in Q1 according to an interview with Weibin Deng, the World Platinum Invdestment Council’s Regional Head, Asia Pacific.

The interview was posted Wednesday.

"[Against] the backdrop of the worldwide economic turmoil caused by the COVID-19 pandemic, purchases of platinum from the Shanghai Gold Exchange grew significantly in the first quarter of 2020, rising from an average of 171,000 oz per quarter in 2019 to 455,000 oz, as manufacturers in the jewellery and industrial sectors responded to the low platinum price and took the opportunity to increase their stock levels," writes Deng.

The council notes that the Shanghai Gold Exchange is now the second largest precious metals trading exchange after the U.S.’s CME Group.

The council has been marketing the platinum group metals in China, training bank employees where platinum group metal is sold and using social media platforms like Wechat and Weibo to build consideration for the metals.

Platinum group metals have a compelling value proposition, said the council.

"Platinum is currently at historic discounts to its sister metal palladium and to gold, offering upside potential should platinum revert to a position where its price reflects supply/demand fundamentals, its industrial value-in-use or its traditional premium to gold," writes Deng.

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