Platinum and palladium markets find their own stimulus

Potential launch of first U.S. ETF backed by the metals holds promise
By Myra P. Saefong, MarketWatch
Last update: 2:27 p.m. EDT April 17, 2009
TOKYO (MarketWatch) -- The platinum and palladium markets have found their own stimulus plan -- in the form of the potential launch of the first U.S. exchange-traded funds physically backed by the precious metals.

In the down economy, couples getting married may find palladium more attractive, with the cost about 70% less than that of platinum. Investors seem to be keen on the metal, too. Stacey Delo reports. (April 17)
And if the SPDR Gold Trust (GLD
SPDR Gold Trust ETF & SLV) are good examples of what ETFs can do for a specific commodities market, then the latest ones backed by platinum and palladium may be no different, analysts said.
These ETFs would be a "huge boon for retail investment into the PGMs (platinum group metals)," said Scott Wright, an analyst at financial-services company Zeal LLC.
Indeed, the timing may be just right. Prices for platinum and palladium have been climbing from lows hit late last year.
Platinum prices have gained more than 60% from their low in October of last year to trade as high as $1,247 an ounce this week on the Comex division of the New York Mercantile Exchange. Palladium's up close to 50% from its December low to a high above $242 an ounce this week.
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