Are Platinum ETFs Putting a Chink in Gold's Armor?


"Gold ETFs were all the rage. . .until physically backed platinum ETFs came along."

Gold ETFs were all the rage. . .until physically backed platinum ETFs came along. Many investors are now considering whether it makes more sense to use platinum in their portfolios the way gold has historically been used.

Does platinum make more sense than gold? While gold has time and major performances on its side, platinum even more rare and every bit as attractive. While gold is popularly used in wiring, platinum is even more versatile on the industrial front. Among other things, it's used in automotive catalytic converters and LCD TV screens, reports Christopher Helman for Forbes.

The recent launch of platinum ETFs has made investment in this metal even more appealing, and in the last three months, it's outperformed gold by about 10%.

ETFs have been a nice driver for platinumís price. That, combined with production problems at South African mines, could continue to support the argument that prices may rise further.

Donít feel sorry for gold, though. SPDR Gold Shares (GLD) is still one of the largest, most popular ETFs around, and with good reason: gold is a store of value, a real asset, a safe-haven tool and a versatile metal used in jewelry, industry and, of course, investment. Year-to-date, however, it has been flat.
  • ETFS Physical Platinum (PPLT)
  • E-TRACS UBS Bloomberg Long Platinum ETN (PTM)
  • iPath Dow Jones AIG Platinum TR Sub-Index ETN (PGM)

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