Platinum Commodity

Platinum commodity ETFs and mutual funds invest the majority of their assets... Platinum commodity ETFs and mutual funds invest the majority of their assets in physical platinum or platinum futures contracts. These funds aim to provide exposure to investors who believe the price of platinum is heading higher. Platinum commodity ETFs and mutual funds tend to be passively managed. The most common type of platinum commodity fund invests in the physical metal itself. These funds store metal in secure vaults on behalf of investors. Some platinum commodity funds only own platinum futures contracts. These are derivatives that are tied to the price of platinum. Platinum futures usually move in lockstep with the price of physical platinum, but there can be times when it’s more profitable to own futures than physical, and vice versa. Investors are attracted to platinum because it’s considered a precious metal and may act as an inflation hedge. The metal is also tied to economic growth, as the largest single use for platinum is in catalytic converters in automobiles. The platinum market is very small compared to gold, and can be very volatile. Investor purchases and sales of platinum can therefore have a large impact on the price. As a result, these funds are only appropriate for investors willing to take on considerable risk. Last Updated: 11/26/2024 View more View less

Platinum commodity ETFs and mutual funds invest the majority of their assets in physical platinum or platinum futures contracts. These funds aim to provide exposure to investors who believe the price of platinum... Platinum commodity ETFs and mutual funds invest the majority of their assets in physical platinum or platinum futures contracts. These funds aim to provide exposure to investors who believe the price of platinum is heading higher. Platinum commodity ETFs and mutual funds tend to be passively managed. The most common type of platinum commodity fund invests in the physical metal itself. These funds store metal in secure vaults on behalf of investors. Some platinum commodity funds only own platinum futures contracts. These are derivatives that are tied to the price of platinum. Platinum futures usually move in lockstep with the price of physical platinum, but there can be times when it’s more profitable to own futures than physical, and vice versa. Investors are attracted to platinum because it’s considered a precious metal and may act as an inflation hedge. The metal is also tied to economic growth, as the largest single use for platinum is in catalytic converters in automobiles. The platinum market is very small compared to gold, and can be very volatile. Investor purchases and sales of platinum can therefore have a large impact on the price. As a result, these funds are only appropriate for investors willing to take on considerable risk. Last Updated: 11/26/2024 View more View less