April 22, 2007 at 1:06 am by Tom Lydon
Zurich Cantonal Bank of Switzerland launche an exchange traded fund (ETF) based on platinum (in European markets). The world’s two largest platinum producers oppose the idea, saying it will put upward pressure on prices and carry a negative effect on jewelry demand. Rumors of a platinum ETF last year, sent platinum to a record high. The bank states they are not trying to move prices upward, they are simply answering the needs for financial investors.
The initial investment is spread across 3 ETFs for platinum, palladium, and silver in response to popular domestic and international demand, reports Chris Flood for FT.com.
With this opposition from the platinum producers, does this mean it will take longer for the U.S. market to get a platinum ETF? All eyes will be on the European version to see how things pan out.
Tags: EWL, Metals, Platinum, Silver
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