Last week’s news on a possible platinum exchange traded fund (ETF) coming to market, sent platinum up 6.7% today. According to Business Times, precious metals experts believe the launch of a platinum ETF could be the reason for the rally. There has been no definitive news on the ETF, but experts believe it would be difficult to get regulatory approvals because of the size of the platinum market.
ETFs are backed by a physical commodity, such as gold and silver ETFs, allowing investors a return based on commodity prices without having to trade futures or take physical delivery. Currently there are gold and silver ETFs: streetTRACKS Gold Shares (GLD), iShares COMEX Gold Trust (IAU) and iShares Silver Trust (SLV).
The opinions and forecasts expressed herein are solely those of Tom Lydon, 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.