By Kitco News

Thursday July 28, 2016 12:38

(Kitco News) - For most of the year platinum has been a laggard with the global growth concerns weighing on the metal’s industrial demand, but sentiment is shifting as retail investors are jump into the market.

The U.S. Mint is reporting unprecedented demand for its limited one-ounce American Eagle Platinum bullion coins as its inventory has been almost completely depleted after releasing the coin only two days ago.

According to the mint’s daily sales data, 18,400 coins have been sold after being made available to authorized purchases July 26. This is the first time the mint has offered a platinum bullion coin since 2014 when it sold 16,900 one-ounce coins, which was the first time the coin was produced since 2008.

“Congressionally authorized American Eagle Platinum Bullion coins provide investors with a convenient and cost effective way to add physical platinum to their investment portfolios.  The American Eagle Platinum Bullion coin is available only in the one troy ounce, $100 denomination,” the mint said in a recent press release.

The new bullion coin comes as platinum prices have soared so far this month, up almost 11% since July first, outperforming gold, which has seen a gain of 0.7%; at the same time silver prices are up 7.4% so far this month. For the year platinum is up 27%, while gold has rallied more than 25%.

October NYMEX platinum futures last traded at $1,139 an ounce, up almost 1% on the day; at the same time August Comex gold futures last traded at $1,331.40 an ounce, up 0.35%.

Peter Hug, global trading director at Kitco.com, said that historically platinum has traded at a premium to gold.

“Five weeks ago platinum was at a $320 discount, today it’s only $200.  If economies turn platinum may catch up,” he said.

Joni Treves, precious metals strategist with UBS also see growing potential for platinum and platinum group metals, in particular palladium.

“An environment where risk appetite is up, equities are at the highs and gold is holding well above $1300 is conducive for PGMs to do well,” she said.