ETF Investors Pile into Platinum, While They Exit Gold

Per a Kitco News report, it seems exchange-traded fund (ETF) investors’ taste for gold during the height of the pandemic is shifting towards platinum. Gold-backed ETFs are starting to see some outflows and platinum funds have been the beneficiary of inflows, according to Commerzbank.

“This is the longest phase of outflows since mid-March,” said analyst Carsten Fritsch. “It appears that institutional investors are switching from ETFs to shares given that the lion’s share of outflows were seen by the SPDR Gold Trust, which is used by this group of investors as an investment vehicle.”

Tuesday finally saw the Dow Jones Industrial Average take a breather from a six-day winning streak, which saw gold make a comeback. As of June 9, gold prices were sitting at $1,683 per ounce.

Meanwhile, platinum is starting to get more shine as the U.S. economy looks to slowly but surely phase in a re-opening. As more investors turn up the risk dial, safe haven precious metals like gold are stepping back, but not platinum.

“Whereas gold ETFs have seen outflows of late, the situation has been just the opposite for platinum ETFs; they registered inflows on five consecutive days recently,” Fritsch said. “The inflows total 37,400 ounces, including 13,000 ounces yesterday. This is one reason why the platinum price surged by more than 2% to $840 per troy ounce yesterday. Having said that, platinum ETFs have still seen outflows of a good 140,000 ounces on balance since the beginning of the year.”

Platinum Level ETF Exposure

As opposed to actually purchasing physical platinum, investors can take advantage of platinum through exchange-traded funds (ETFs) like the Aberdeen Standard Platinum Shares ETF (NYSEArca: PPLT). PPLT seeks to reflect the performance of the price of physical platinum, less the expenses of the Trust’s operations, and is designed for investors who want a cost-effective and convenient way to invest in platinum with minimal credit risk.

Fund facts:

  • Physically-Backed: Cost-effective and convenient access to physical platinum.
  • Transparency: The metal is held in allocated bars and a bar list is posted daily on
  • Pricing: The metal is priced off the LPPM’s specifications for Good Delivery, which is an internationally recognized and transparent benchmark for pricing physical platinum.
  • Vault Location: Metal is held in London, United Kingdom at a secured vault of J.P. Morgan Chase Bank, N.A.
  • Vault Inspection: Inspectorate International, a leading physical commodity auditor, inspects the vault twice per year (including once at random).

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