The United States’ first platinum ETF is in registration. Ahead of the fund’s launch are some warnings for investors about the popular metal.
Investors who are bullish on platinum now have an ETF in the works that could create demand for the metal, as each share must have a corresponding quantity of the precious metal behind it, Liam Denning for The Wall Street Journal explains. The filing for the U.S. fund was made by ETF Securities, which has a platinum fund in London right now.
Since the prospective ETF first filed, platinum is up 5%, and has been up 51% since its November low. The metals had been suffering, because the auto industry hit platinum where it hurts – catalytic converters for cars make up 55% of the world’s total platinum demand.
Full Story: http://seekingalpha.com/article/131202-could-a-new-platinum-etf-send-prices-haywire