The Commodity Futures Trading Commission (CFTC) is careful to make sure that trading activity doesn’t lead to a situation in which investors corner the market.
The London Stock Exchange lists a platinum ETF from ETF Securities (PHPT), and its existence is likely just a matter of different rules and regulations. "They’ve done things that wouldn’t be as easy to do here in the U.S. from a regulatory perspective," Rich says.
The largest silver ETF, iShares Silver Trust (SLV), is up 33.7% year-to-date.
The metal could be benefiting from its versatility. Not only is it used in jewelry and some is held for profit, but it has a number of industrial applications. It’s the best conductor of both heat and electricity. It’s used in batteries, conductors, fuses, contacts and a water purifier.
You’d think there would be a ton of the stuff lying around, but it isn’t the case: the price bottomed in 1980, much of the existing stockpile was melted down and mining slowed down.
Metals, like any commodity, are volatile. They’re doing great now, but be wary of sudden dips and watch the trends closely so you know when it’s time to jump ship.