Are platinum ETFs a good investment?

Platinum ETFs enjoy all the benefits of ETFs. These include diversified holdings and some tax benefits, compared to mutual funds. Like ETFs covering any other sector, platinum ETFs can also be leveraged or inverse ETFs. These advanced trading tools use futures, options, and other derivatives to obtain the goal.

What are the three platinum exchange-traded funds (ETFs)?

The three platinum exchange-traded funds (ETFs) that trade in the U.S, ranked by one-year trailing total returns, are PLTM, PPLT, and PGM. These ETFs are backed by either physical platinum or platinum futures contracts. There are two main types of platinum ETFs for investors to choose from:

What is a platinum ETN?

Platinum ETNs invest in futures contracts that track the price of the metal, as opposed to holding it in physical form. There are three distinct platinum ETFs that trade in the U.S. Their goal is to track the price of platinum by holding the physical metal or through futures contracts and do not hold shares of platinum mining companies.

How do you invest in platinum?

To gain exposure to the metal, investors may purchase platinum bars or coins, platinum futures contracts, or shares of platinum mining companies. Another option is a platinum exchange-traded fund (ETF). This instrument tends to be more liquid than holding the physical commodity and does not require paying related storage or insurance costs.