ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Alternatives Channel
  2. Platinum Pertinent in 2023’s Commodities Conversation
Alternatives Channel
Share

Platinum Pertinent in 2023's Commodities Conversation

Tom LydonJan 11, 2023
2023-01-11

Commodities are on a two-year winning streak over stocks and some market observers believe more upside is in store for commodities in 2023. Count platinum as one that’s starting the new year in an upbeat fashion.

Platinum was a winner last year, topping gold and silver thanks to a stellar fourth-quarter showing and that momentum carried over into 2023. The precious metal’s strong usage case, which includes heavy traditional industry as well as renewable energy among much more, is an important fundamental catalyst for prospective investors to evaluate.

“The metal — believed to be the rarest of all precious metals — is used in the defense and aerospace industries, especially in jet and rocket engines, as well as in the manufacture of detergents, fertilizers, plastics, and explosives. It it is also used in hydrogen fuel cell vehicles, where hydrogen is passed through a platinum catalyst,” reported Weizhen Tan for CNBC.

As is often the case in the commodities complex, supply and demand dynamics are crucial in the platinum equation. The World Platinum Investment Council notes China’s appetite for the metal over the past several years has been voracious, putting some strain on readily available supply.

Investors can access platinum in physical form, which is cost-intensive, or by way of a variety of exchange traded products, including some exchange traded notes (ETNs). The GraniteShares Platinum Trust (PLTM C+)  and the iPath Series B Bloomberg Platinum Subindex Total Return ETN (PGM B)+ are among the well-known exchange traded products.

The Sprott Physical Platinum and Palladium Trust SPPP provides exposure to physical holdings of both of those metals, the latter of which is a major component in the production of catalytic converters in automobiles. The abrdn Standard Platinum Shares ETF (PPLT A-), which is also backed by physical platinum, is perhaps the bellwether ETF in this category.

Those exchange traded products stand to benefit if the Federal Reserve eases its pace of interest rate hikes, which would likely stoke downside in the U.S. dollar. Platinum and other commodities are denominated in dollars, making them sensitive to the greenback’s price action.

“Furthermore, a weaker U.S. dollar (DXY) has contributed heavily to rising commodity prices in the last few weeks. The U.S. Federal Reserve is also slowing down its aggressive monetary tightening policy, due to announcing a 50 basis points increase in its last December meeting, a change from the last few 75-basis point hikes. This has also gone a long way in supporting precious metal prices,” according to Capital.com.

For more news, information, and analysis, visit the Alternatives Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X