Fund companies looking to harness that growth have been launching a number of new products this year, including:
- iPath Dow Jones-AIG Platinum (PGM): Launched on June 24
- E-TRACS UBS Long Platinum (PTM): Launched on May 9
- E-TRACS UBS Short Platinum (PTD): Launched on May 9
- ELEMENTS MLCX Precious Metals (PMY): Launched on April 4; holds 32% platinum; 52% gold; 8% silver and 8% palladium
But unlike ETFs for platinum, the ETNs don’t hold the metal, which leaves the market unaffected. Instead, they buy or sell contracts in the futures market to replicate price movements.
Some have noted that demand for platinum has been tapering off, driven lower by the high prices. For years now, automakers have been replacing platinum with palladium, which isn’t as pricey.
Some automakers are looking to go even cheaper than that, as one mining company has developed a catalyst that uses silver for diesel-fueled engines.
Other ways to access precious metals include:
- iShares Silver Trust (SLV), up 20.2% year-to-date
- PowerShares DB Precious Metals (DBP), up 10.5% year-to-date
- SPDR Gold Shares (GLD), up 10.2% year-to-date