Forget Gold; Look at the Platinum ETFs


"Platinum for immediate delivery has surged as high as $1,808.50/oz."

Gold is the squeaky wheel that gets the grease, but platinum and palladium exchange traded funds (ETFs) haven't exactly been chopped liver.

In fact, a new 2010 high for platinum was reached last week. A few factors have contributed to the gains seen in platinum and palladium in recent months:
  • South Africa said production of platinum group metals rose 46% in September as price gains spurred output and after a labor strike at Impala Platinum Holdings Ltd. cut shipments in 2009, Carli Lornes for Business Week reports.
  • South Africa is expanding extraction of the metal as an increase in demand from auto and jewelry makers boosts prices. The country has about 75% of the world's reserves.
  • Palladium is getting a boost from demand, too, rallying 75% this year. Sara Grillo for Business Insider reports that palladium is rarer than gold or platinum.
  • Jason Scott for Bloomberg reports that platinum for immediate delivery has surged as high as $1,808.50 an ounce, the highest level since July 2008. With a triple threat of investment demand, ETF demand and industrial demand, platinum group metals could be poised for even more.
If you've become skeptical of the gold rally, platinum can be an appealing play as metals prices rise across the board. Platinum shares qualities with both silver and gold, so it has the potential to deliver the best of both worldsósafety, inflation protection and potential for returnsóbut do keep in mind price volatility as a result of their industrial uses. Both ETFs that trade the metals are physically backed, so they seek to reflect the spot price.

ETF Securities Physical Palladium (NYSEArca: PALL)
PALL Platinum ETF

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