Platinum ETF Leads Commodities on Platinum Coin Furor
January 11th, 2013 at 2:09pm by John Spence
ETFS Physical Platinum Shares (NYSEArca: PPLT) is the best-performing commodity ETF this week with a gain of more than 4% as talk of the U.S. minting a $1 trillion platinum coin to avert the debt ceiling just refuses to die.
“In just a few weeks, the ‘platinum coin’ option has gone from a wacky idea to becoming the subject of serious discussion among academics, market participants and, yes, some politicians. In itself, this evolution says a lot about the state of U.S. Congressional dysfunction, especially when it comes to economic governance,” writes Mohamed El-Erian, CEO and co-chief investment officer of PIMCO, at Fortune.com.
The platinum ETF was up for the fourth straight session Friday amid the lingering debate and grandstanding over the platinum coin.
Elsewhere in ETFs, Spain and Italy were also among the top gainers this week as Europe continues to outperform the U.S. [Why the Eurozone ETF is Trouncing the S&P 500]
In the major U.S. equity indices, the S&P 500 was on track for a slightly weekly gain of 0.2% in afternoon trading Friday, while the Dow added 0.3% and the Nasdaq Composite climbed 0.6%.
Other top performers in ETFs this week included funds for Vietnam, corn, solar energy and coffee. Market Vectors Vietnam ETF (NYSEArca: VNM) was still on track for a weekly gain of 4% despite tumbling about 4% on Friday.
The Vietnam has rallied sharply since the beginning of December but saw some of its premium to net asset value unwind in Friday’s sell-off.
Conversely, ETFs tracking Indonesia, China, VIX futures, coal and Russia were among the steepest decliners this week.
The top three unleveraged ETFs this week were ETFS Physical Platinum Shares, iShares MSCI Spain (NYSEArca: EWP) and iShares MSCI Italy (NYSEArca: EWI) with advances of more than 4%.
The bottom three unleveraged ETFs this week were iShares MSCI Indonesia (NYSEArca: EIDO), Market Vectors Indonesia (NYSEArca: IDX) and Market Vectors China (NYSEArca: PEK). They lost over 3%.
In next week’s economic data, look for reports on producer prices, retail sales, business inventories, consumer prices, the Fed’s Beige Book, housing starts, consumer sentiment and homebuilder confidence.
ETFS Physical Platinum Shares
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.