Gold exchange traded funds (ETFs) were all the rage…until physically-backed platinum ETFs came along. Many investors are now considering whether it makes more sense to use platinum in their portfolios the way gold has historically been used.
Does platinum make more sense than gold? While gold has time and major performances on its side, platinum even more rare and every bit as attractive. While gold is popularly used in wiring, platinum is even more versatile on the industrial front. Among other things, it’s used in automotive catalytic converters and LCD TV screens, reports Christopher Helman for Forbes. [Platinum ETFs: Supply, Demand and the World Cup.]
The recent launch of platinum ETFs has made investment in this metal even more appealing, and in the last three months, it’s outperformed gold by about 10%. [Fundamentals Favoring Platinum ETFs.]
ETFs have been a nice driver for platinum’s price. That, combined with production problems at South African mines, could continue to support the argument that prices may rise further. [How Metals ETFs Changed Investing.]
Don’t feel sorry for gold, though. SPDR Gold Shares (NYSEArca: GLD) is still one of the largest, most popular ETFs around, and with good reason: gold is a store of value, a real asset, a safe-haven tool and a versatile metal used in jewelry, industry and, of course, investment. Year-to-date, however, it has been flat. [Gold Miner ETFs Quiet, But Maybe Not for Long.]
For more stories about platinum, visit our platinum category.
- ETFS Physical Platinum (NYSEArca: PPLT)
- E-TRACS UBS Bloomberg Long Platinum ETN (NYSEArca: PTM)
- iPath Dow Jones AIG Platinum TR Sub-Index ETN (NYSEArca: PGM)
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.