Royal Mint to Produce Platinum Coins

[Bimat]

Royal Mint Enters Platinum Market

December 16th, 2016 by Everett Millman

In a storied history that spans more than an entire millennium, the Royal Mint—the official state mint of the United Kingdom—has actually never issued anything in platinum bullion before. That is all appearing to change in the near future now that the mint has partnered with the World Platinum Investment Council (WPIM) to bring platinum coins and bars to its customers for the first time ever.

Rising Popularity of Platinum

The WPIM has been advocating for greater availability of platinum investment products around the world, and the campaign appears to be bearing fruits.

In the past, platinum was seen by many investors as more of an industrial metal (rather than a precious metal) due to its widespread use in the manufacture of automobiles. Although this is objectively true, increased interest in platinum jewelry began to stir around the turn of the 21st century. The subsequent decline in platinum prices over the last several years has also increased investor interest in adding platinum bullion to their portfolios as a way to diversify with a tangible asset. Platinum is now priced well below gold, as well, trading around $900/oz compared to over $1,100/oz for gold.

Several government mints around the world have finally been expanding what kinds of platinum products they offer to investors. For the most part, when countries like the United States or Russia have issued platinum coins, they have been of the collectible variety.

However, South Africa recently announced it will issue a Platinum Krugerrand coin for the first time in 2017 to honor the Krugerrand's 50th anniversary (1967). Likewise, Austria has introduced the Platinum Philharmonic coin, a new addition to its already popular Gold Philharmonic and Silver Philharmonic coins.

Now, the renowned Royal Mint (U.K.) is also joining the blossoming investment-grade platinum market for the first time in its history. The mint will offer its new platinum products beginning in 2017 alongside its existing lineup of precious metal coins and bullion bars. The Royal Mint enjoys one of the best reputations of any government mint in the world, not only because of its long and impressive history, but also because it ranks as the world's top export mint.

There is still no indication about precisely what kinds of products—"a range of bullion coins and bars"—the mint will issue in platinum. In either case, these items are expected to be .995 fine (99.5% pure) platinum or better.

Source

[Figleaf]

The "World Platinum Investment Council" is a UK political lobby group for mining interests. The words World, Investment and Council are all misleading. Platinum may be a viable investment as a tiny part of a very large investment portfolio (say €5 billion, preferably more) that contains a commodities segment. It is unsuitable for retail investors. Speculators who buy this as an "investment" will have to overcome the (probably pretty large) seigniorage of the mint and VAT before they make any profit at all and will take the risk of fraud, theft, loss and deterioration upon themselves.

Peter

[Bimat]

Which other mints offer platinum coins? Can only think of Austria and US...

Aditya

[Figleaf]

The only country that ever tried to circulate platinum coins is Russia. The experiment failed. Minting was expensive, as platinum is a very hard metal and the colour of platinum was too close to silver, so the coins did not find great acceptance.

Peter

[eurocoin]

In fact The Royal Mint has in the past issued platinum collectors coins, these were only not bullion coins so that is the only thing that's new.

Countries that have issued platinum coins:

Australia
Austria
Bophuthatswana
Canada
China
Fiji
Isle of Man
Panama
Portugal
Russia
South Africa (From 2017)
United Kingdom
United States of America