The benefits of being physically backed
The term 'exchange-traded product' covers both physically backed ETFs (i.e. the fund physically holds the metal in a secure vault, similar to a bank vault) and those funds in which the managers use instruments (such as derivatives and futures) to mimic the price of platinum. Almost all platinum ETFs are physically backed which means that investors benefit from knowing that their share represents ownership of a physical asset.
A single share in a platinum ETF tends to represent the ownership of one-tenth of an ounce of platinum. On this measure, at present prices, one ETF share is trading below USD$100. For an investor with a long-term view, ETFs offer a relatively affordable way to accumulate an investment in platinum, enhancing diversification and adding a physically backed asset to your portfolio.