Recent years have seen gold and silver emerge as investor favorites given their appeal as precious metals. But with the popularity of the aforementioned metals came the general shunning of platinum and palladium, the other precious metals. While investment in these two hard assets is not quite as popular as gold and silver, they are a bit more practical and may make more sense from an investing standpoint. Palladium, for example has the lowest melting point and lowest density of the PGMs, and about half of the world’s palladium is ultimately used in catalytic converters. Those devices are responsible for converting hydrocarbons and carbon monoxide from automobile emissions into carbon dioxide, water vapor, and other non-harmful forms.
Platinum is a dense, malleable transition metal, and as a member of the platinum group of elements it is generally unreactive. It is a relatively recent discovery—scientists first became aware of its existence in the 18th century—but certain physical characteristics have made it ideal for a wide variety of industrial applications. About half of the supply of platinum goes towards emission control devices for automobiles; as a catalyst it allows for the combustion of unburned hydrocarbons from the exhaust into carbon dioxide and water vapor. Jewelry and electronics are other significant end uses, and platinum is also used in certain dental applications and thermometers.
Because these metals have a much more frequent use in the industrial world, they can be thought of as a better play on macroeconomic conditions rather than some of the speculation and trading aspects that plague some gold and silver investments.
For those looking to invest in these two metals, there are a number of ETFs to help you take advantage of these assets. Among several broad based products, the ETFS Physical Palladium Shares (PALL) and the ETFS Physical Platinum Shares (PPLT). Platinum is more widely represented as there are several other products that also utilize a futures-based strategy.
Platinum is a dense, malleable transition metal, and as a member of the platinum group of elements it is generally unreactive. It is a relatively recent discovery—scientists first became aware of its existence in the 18th century—but certain physical characteristics have made it ideal for a wide variety of industrial applications. About half of the supply of platinum goes towards emission control devices for automobiles; as a catalyst it allows for the combustion of unburned hydrocarbons from the exhaust into carbon dioxide and water vapor. Jewelry and electronics are other significant end uses, and platinum is also used in certain dental applications and thermometers.
Because these metals have a much more frequent use in the industrial world, they can be thought of as a better play on macroeconomic conditions rather than some of the speculation and trading aspects that plague some gold and silver investments.
For those looking to invest in these two metals, there are a number of ETFs to help you take advantage of these assets. Among several broad based products, the ETFS Physical Palladium Shares (PALL) and the ETFS Physical Platinum Shares (PPLT). Platinum is more widely represented as there are several other products that also utilize a futures-based strategy.
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