Investing in Platinum ETFs

Top platinum ETFs in 2025

Platinum is a precious metal with multiple industrial uses. It’s found in electric car batteries, as well as some fuel cells (such as hydrogen) used in the energy grid. Platinum is also used in the manufacture of semiconductors and other electrical components, medical devices, and industrial chemicals.

Given the difficulty with investing in platinum, that’s where a platinum ETF or another precious metals ETF might come into play

1. Abrdn Physical Platinum Shares ETF

2. GraniteShares Platinum Trust

What to consider when investing in platinum ETFs

Before you invest in platinum ETFs, here's what to consider:

• Decide what type of platinum ETF you want. There are funds that hold platinum directly, that use platinum futures contracts, or that provide indirect exposure through platinum mining companies.
• Compare expense ratios. While fees aren't everything, they cut into your returns, so you don't want an ETF that's overly expensive.
• Check the liquidity. One of the benefits of investing in platinum through an ETF is that it's easier to buy and sell, but only if the fund has sufficient trading volume.
• Make sure it's secure. Read about how the fund keeps its platinum reserves safe, and check how frequently these reserves are audited.

Pros and cons of investing in platinum ETFs

Platinum ETFs have their benefits and drawbacks. Here are the pros of investing in them:

• Diversification: Since precious metals are a different asset class than stocks and bonds, platinum ETFs allow you to diversify and reduce risk in your portfolio.
• Hedge against inflation: While gold is the precious metal that's most often considered a hedge against inflation, platinum can also hold its value better than the U.S. dollar.
• Convenience: You can buy shares in platinum ETFs through a brokerage account, making this a fast and easy way to invest in platinum.

Now, let's look at the downsides:

• Volatility: Platinum prices are more volatile than those of gold and silver. There are fewer mining sites and a much smaller overall market for platinum, and its price depends heavily on demand from automakers.
• Management fees: The disadvantage of platinum ETFs is that they don't quite match the price of platinum because of the expense ratio. Even though there are platinum ETFs with reasonable fees, they're still more expensive than what many stock index funds charge.
• May underperform: Platinum has some growth potential, but stocks are a better choice for growth-oriented investors.

How to invest in platinum ETFs

When you're ready to buy shares in a platinum ETF, here's how to do it:

1. Open your brokerage app: Log in to your brokerage account where you handle your investments.
2. Search for the ETF: Enter the ticker or ETF name into the search bar to bring up the ETF's trading page.
3. Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
4. Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
5. Submit your order: Confirm the details and submit your buy order.
6. Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

Should you invest in platinum ETFs?

Platinum is an interesting asset if you're considering investing in commodities. The demand for precious metals could increase in the coming years as cars and trucks go electric and as other parts of the global energy grid make use of renewable energy sources. However, like other mined commodities, platinum prices will be volatile and unpredictable.