Platinum ETF: Have the Swiss Stolen a March on the Rest?

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The head of asset allocation to Zurich Cantonal Bank highlighted early in December the fact that there has been considerable interest in the bank's platinum-backed Exchange Traded Fund and suggested that investors were looking at "real assets" as a hedge against credit problems and the malaise in the economic environment.

The London platinum-backed Exchange Traded Commodity added metal last week. Is this foreshadowing a recovery in platinum?

The head of asset allocation to Zurich Cantonal Bank highlighted early in December the fact that there has been considerable interest in the bank's platinum-backed Exchange Traded Fund and suggested that investors were looking at "real assets" as a hedge against credit problems and the malaise in the economic environment.

The story has not been the same in the London-based Exchange Traded Commodity, which begs the question - do the Swiss know something that the rest of us don't? The answer probably lies in the fact that Zurich is the de facto terminal market for platinum and also for palladium, with the majority of the world's bullion inventories stored in vaults in Switzerland and it may well be that there is a more natural affinity for platinum in that country than in some others. It also, of course, points to the long-term time horizons of Swiss investors.

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