Platinum ETFs and ETNs: An Investor’s Options
Exchange traded products are becoming increasingly popular with investors. To the surprise of many, there are a number of options designed specifically for those seeking exposure to platinum.
Exchange traded products are becoming increasingly popular with investors. To the surprise of many, there are a number of options designed specifically for those seeking exposure to platinum.
South Africa's ongoing power supply issues may help to keep platinum prices high, but it could also hurt expansion efforts.
Emerging economies have growing appetites for luxury. Trends reveal that platinum jewelry is one category of goods that are increasingly included on the shopping lists.
The effect of Japan's earthquake on auto makers has a major impact on platinum markets because it affects demand. However, a move to nationalize mines in Zimbabwe may also play a major role in platinum's future due to potential effects on supply.
The perfect storm has hit platinum in the wake of the Japanese earthquake and geopolitical events in the Middle East and North Africa regions. The impact of these events are specific to the platinum market in one regard: automotive demand. Nearly 40 percent of total platinum demand comes from the auto industry.
Higher platinum prices are encouraging some in the catalytic converter industry to turn to palladium as a cheaper alternative, but increasing worldwide auto demand, especially for cleaner vehicles, will continue to drive platinum prices higher.
Platinum Investing News speaks with William Rhind, Strategic Director of Business Development from ETF Securities. Platinum may have even more success on market in the future, though this will be contingent on global economic recovery, and the auto industry.
While platinum remains below its 2007 peak, it may be a better investment than gold.
Platinum prices hovered around US$1,530 per ounce again Monday. Stuck between US$1,500 and US$1,600 since mid-May, analysts are predicting demand for platinum – used in everything from cars, to computers and cell phones – could be heating up and prices could be on the rise.
Platinum prices made gains on Tuesday, climbing to $1,525 per ounce after opening July at $1,500. The metal is up 5 percent since closing out 2009, an impressive feat given the lingering fears that the European debt crisis could still trigger a double-dip recession.
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