This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Platinum, Palladium ETFs Make Debut

NEW YORK (TheStreet) -- ETF Securities is launching the first U.S.-traded physically-backed platinum and palladium ETFs today.

The highly anticipated ETFS Physical Platinum Shares (PPLT) and ETFS Physical Palladium Shares (PALL) will expand the lineup of popular commodities funds designed to give investors access to the price of precious metals.

As I noted previously, platinum and palladium are unique precious metal holdings that stand to benefit from rapid expansion abroad.

More than half of the supply of palladium and platinum goes into the construction of catalytic converters, which convert harmful gases from auto emissions into less harmful substances. As the rapidly growing markets in China and India begin to develop emissions standards, platinum and palladium will be in high demand.

PPLT and PALL will join the ranks of other popular physically-backed ETF Securities funds. Already trading are the ETFS Physical Silver Shares (SIVR) fund and ETFS Physical Swiss Gold Shares (SGOL), launched in July and September respectively. If the rapid growth of SIVR and SGOL is any indication of investor interest, PPLT and PALL could quickly attract volume.

While PPLT and PALL are the first U.S.-traded funds to track physical stockpiles of platinum and palladium, other platinum and palladium-tracking securities have already premiered with varying success.

The UBS E-TRACS CMCI Long Platinum Total Return ETN (PTM), UBS E-TRACS CMCI Short Platinum Excess Return (PTD), and the Dow Jones-UBS Platinum Subindex Total Return (PGM), all offer investors exposure to platinum prices through derivatives contracts. These funds use platinum futures contracts to give investors exposure to the price of platinum.

These existing platinum products, however, have faced challenges in open market trading. PTM and PTD are volatile funds that use leveraged strategies to track platinum. While PTM has a relatively high average daily trading volume of 85,000 shares, PTD has attracted virtually no investor interest.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,086.63 -26.91 -0.16%
S&P 500 1,987.01 +3.48 0.18%
NASDAQ 4,473.6970 +17.6810 0.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs