WSJ / A New Craze: Platinum ETFs

This isn't about Palladium jewelry - in fact it's mostly about Platinum! But part of understanding the jewelry market is looking into the economics behind the metals. Today's Wall Street Journal has a good article on Platinum Group Metals and their rising popularity in Exchange Traded Funds (ETFs).

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By CAROLYN CUI
July 8, 2008; Page C14

Gold and silver bugs, move over.

Investors are flocking to a new class of precious metals: the kind that actually do things, rather than end up in vaults or on fingers.

Platinum prices have soared 30% this year and its cheaper cousin, palladium, has risen 19%, largely on demand for cleaner cars. A flood of new investment vehicles -- including exchange-traded funds -- that allow investors to bet on these metals' trajectory also are fueling the market.
[Metals]

The two metals are called "precious" because of their scarcity. Platinum jewelry has long been a higher-end alternative to gold. But unlike gold, platinum isn't viewed as a prime refuge for investors in times of uncertainty.

.... Read the full article