Prestige Bullion, a joint venture between the South African mint and the Rand refinery, has announced that it will deliver a new line of physical platinum investment products suitable for retail investors.
This step marks the first entry vBig 5 on Prestige Bullion into the platinum bar market.
The Big 5 themed Bullion coin will be part of a multi-year palette that begins in 2020 and will continue until 2022, showing the impressive elephants, lions, rhinos, leopards and buffalos.
A new animal will appear on the bullion coin every six months, starting with the elephant.
According to Richard Collocott, Managing Director of Prestige Bullion, the coin supports the broader efforts of the South African mining industry to stimulate demand for South African platinum.
The country produces over 70% of the world's extracted metal.
“The introduction of the Big 5 Platinum Bullion coin will give precious metals investors greater choice in diversifying their portfolios and will catapult Prestige Bullion into the prestigious ensemble of highly respected competitors offering investment products in platinum, gold and silver.
The first coin in the series features the mighty African elephant filling the obverse. Around the elephant, below the tusks, the words "South Africa" and "Big Five 2020" can be seen on both sides of the South African national coat of arms.
The back bears the sophisticated design of two halves of the elephant face, side by side, with distinctive ears, tusks, eyes and the trunk.
“The Big 5 bullion coin series will break the promise that platinum makes as an investment product. Platinum is seen by many as a store of value and a source of long-term value, ”added Collocott.
Prestige Bullion houses and manages the entire business of producing, distributing and selling Krugerrand Bullion coins for local and international markets.
The Big 5 platinum coin is sold through the same dealer network as the Krugerrand.
Prestige Bullion is a pure, global marketing company that was originally created to service the Krugerrand and related businesses. Prestige Bullion's purpose is to ensure global access to South Africa's world-class range of Bullion coins.
Roger Baxter, CEO of the Minerals Council South Africa, said: “It makes sense to increase the economic value of platinum by processing and converting it into investment value.
"The platinum mining industry will benefit from Prestige Bullion's extensive global experience in marketing South African gold to international investors in the form of Krugerrands."
The coin as legal tender will be minted in 1oz in 999,5% platinum and will be available according to the bar standard.
The price of the Big 5 is set in relation to the closing price of platinum. While the price may change due to fluctuations in market prices, the final cost will include a standard manufacturing fee and will incur a 15% sales tax on purchases made in South Africa.
"The new coin, a first for Prestige-Bullion, represents an important milestone and supports the growth potential of the South African platinum mining industry on a broader basis," adds Collocott.
African mining / ISE - March 2020
