Platinum ETF Funds Taking Off as Chinese Platinum Bar Prices Drop

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Many industrial buyers have asked what kind of impact ETF funds have on metals markets. For most industrial metals it has become a non-issue (as most industrial metals don’t have associated ETF funds). However, platinum markets serve as an exception as a new platinum ETF called NewGold Platinum has now garnered 375,800 ounces in a mere six weeks accounting for 20 percent of global ETF holdings.

Investors clearly see platinum as an attractive commodity.

Political risk for platinum mining as well as cost pressures have driven the demand for platinum ETFs as they “give investors exposure to the underlying asset price without having to store and insure physical metal…”

Following a three-day flat streak, the price of Chinese platinum bar dropped by 3.8 percent on Thursday, June 13. Japanese platinum bar prices were off by 3.5 percent on Thursday. US platinum bar ended the day at $1,478 per ounce, after the 0.1 percent drop on Thursday.

Japanese palladium bar finished the day down 1.8 percent to JPY 2,333 ($24.42) per gram. US palladium bar finished the day up 0.5 percent to $756.00 per ounce. The price of Chinese palladium bar remained essentially flat.

Japanese gold bullion fell 1.7 percent yesterday. After falling for two days, the price of Indian gold bullion rose 1.0 percent. The price of Chinese gold bullion fell 1.0 percent yesterday after three straight days with no change. After a 0.7 percent increase, US gold bullion finished the day at $1,388 per ounce.

The price of Chinese silver fell 3.3 percent yesterday. Japanese silver prices saw a 2.1 percent decline. The price of Indian silver finished the market day up 0.5 percent per kilogram. The price of US silver rose 0.5 percent yesterday, just off the 30-day low of $21.79 per ounce it hit on Tuesday, June 11.

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