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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.

Platinum Prices on Shaky Ground

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.

Auto Sales May Drive Platinum Prices Further, Despite Palladium’s Potential to Outshine

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 Riding High

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 Driven By Chinese and Indian Auto Markets

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.