SA platinum coin to go on sale in two weeks
A long-awaited platinum coin from SA will go on sale in coming weeks, ending years of pushing from the country’s mining companies for the legal-tender coin to supplement demand for the metal.
The push has been under way for at least six years.
The plan is for the coin to capture a fifth of the global platinum coin market.
SA is the world’s largest source of platinum, making it the logical place to mint and sell platinum coins.
Platinum is used in jewellery and has value in coins, which are minted elsewhere in the world and are a collectable investment.
In a long-anticipated breakthrough, the coin will soon be in circulation, competing against coins such as the Britannia one ounce coin launched in January 2018, and platinum coins from the US, Canada, China and Australia.
The first coin in a series called Big Five is being minted and will go on sale in two weeks, bearing the image of an elephant.
“There is sound logic in improving the economic value of platinum by the way of beneficiation and converting it into an investment asset,” Minerals Council SA CEO Roger Baxter said.
Prestige Bullion is mandated to manage the legal-tender bullion range for SA, and this coin, along with the famous Krugerrand, is issued under the authority of the Reserve Bank.
Prestige is a joint venture between the SA Mint and Rand Refinery, a preciousmetals smelter and refinery business.
While the Bank will only buy the coin back at its face value of R20, Prestige will provide liquidity to ensure the coins have a secondary market aligned to the spot platinum price, Collocott said.
Asked why the coin did not carry the Mandela name as the platinum companies had long spoken about, Collocott said it was not a point of discussion among those designing the coins.