Platinum shines during Tokyo Olympics – World Platinum Investment Council

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(Kitco News) – Gold, silver and bronze are garnering most of the attention during the Tokyo 2020 Olympics; however, the power of platinum is also on full display in Japan, according to a recent report from the World Platinum Investment Council (WPIC).

The WPIC has noted that the development of green hydrogen fuel cells will lead to new industrial demand for platinum. The precious metal is a critical element to separate hydrogen in water, which in turn is used to power hydrogen fuel cells.

The analysts at the WPIC noted that hydrogen power is playing a critical role during the Tokyo Olympics.

“For the first time, the Olympic flame is fueled by emissions-free green hydrogen rather than propane, while the Olympic village has been equipped with a hydrogen refueling station and a hydrogen pipeline to serve the platinum-based fuel cell electric vehicle (FCEV) buses and cars that are being deployed to transport the athletes,” the council noted in the report.

The report also noted that spectators, which aren’t allowed at this year’s Summer Games due to the COVID-19 pandemic, would have also been transported by hydrogen-powered busses.

The WPIC noted that Japan had become a leader in the development of hydrogen technology, with the government looking to spend more than $3 billion to support hydrogen technology development over the next ten years. Japan’s ambitious goal is to have net-zero emissions by 2050.

Although hydrogen power still presents a small part of the platinum market, the WPIC sees a growing market. In its first-quarter projections, the company expects platinum hydrogen market demand to rise 17% to 85,000 ounces.

Despite the positive outlook for platinum, the price continues to struggle to attract investor attention. October platinum futures last traded at $1,058 an ounce, up nearly 1% on the day. However, prices are down 18% from their February highs above $1,300 an ounce.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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