Platinum exchange traded funds (ETFs) could be in for some tough times ahead.

Platinum Today reports that the metal, along with other precious metals, could face challenges as the market begins to recover and the dollar exhibits strength.

Related products were strong in the first half of this year, but now they’re faltering. Holdings of platinum in ETFs (listed in London) have dropped 41.4% from their peak in July. Production delays and disruptions in power supply haven’t helped the market for platinum, where demand for the metal remains strong. It’s used heavily used in catalytic converters, which control engine emissions. Demand for it will only continue to grow as emissions standards tighten.

There is no platinum ETF in the United States, but there are a number of exchange traded notes (ETNs) through which investors can get exposure. Most of the funds are trading higher today, so perhaps the hard times have been staved off for a bit:

• E-TRACS UBS Long Platinum (PTM), down 32.2% since May 9 launch
• E-TRACS UBS Short Platinum (PTD), up 36.3% since May 9 launch
• iPath DJ AIG Platinum TR Sub-Index (PGM), down 30% since July 8 launch
• ELEMENTS MLCX Precious Metals (PMY), down 22.5% since April 4 launch

Tags: Metals & Mining, PGM, Platinum, PMY, Precious Metals, PTD, PTM