Many consider the launches of gold and silver exchange traded funds (ETFs) to be successful so it comes as no surprise that speculation has increased about a platinum ETF. The main obstacle to such an ETF is that the market for is smaller and less liquid. So far London and Zurich look like the most likely launching grounds according to analysts of Resource Investor.
Aside from the purely speculative angle, the largest demand for platinum comes from the automotive industry (car exhaust equipment) and the jewelry sector. One of the largest suppliers, South African platinum isn't likely to exceed demand especially as governments worldwide tighten emissions standards which is expected to increase another 5% this year to 7 million ounces.
Earlier in November, platinum experienced its biggest one-day gain in 20 years and soared to an all-time high of over $1,400 an ounce largely due to the possibility of an ETF. The platinum ETF is expected to increase the metal's price between 5-15%.