INSURANCE

Platinum has a much shorter history in the financial sector than either gold or silver, which were known to ancient civilizations.

Platinum is relatively scarce even among the precious metals. New mine production totals approximately only 5 million troy ounces a year. In contrast, gold mine production runs approximately 82 million ounces a year, and silver production is approximately 547 million ounces. As such, it tends to trade at higher per-unit prices.

Platinum is traded on the New York Mercantile Exchange (NYMEX) and the London Platinum and Palladium Market. To be saleable on most commodity markets, platinum ingots must be assayed and hallmarked in a manner similar to the way gold and silver are.

The price of platinum changes along with its supply and demand. During periods of sustained economic stability and growth, the price of platinum tends to be as much as twice the price of gold, whereas, during periods of economic uncertainty, the price of platinum tends to decrease due to reduced demand, falling below the price of gold, partly due to increased gold prices. Platinum price peaked near US$2,300 per troy ounce in March 2008 driven on production concerns (brought about partly due to power delivery problems to South African mines). It subsequently fell to US$932 per troy oz in October 2008.

EXCHANGE-TRADED FUNDS

Platinum is traded on the London Stock Exchange as an exchange-traded fund under the ticker symbol LSE: PHPT.

PLATINUM COIN

Platinum coins are another way to invest in platinum, although relatively few varieties of platinum coins have been minted, due to its cost and difficulty in working.

Like other precious metals, palladium may be used as an investment. Palladium price peaked near US$1,100 per troy ounce in January 2001 (approximately US$1300 in 2007) driven mainly on speculation of the catalytic converter demand from in the automobile industry. It subsequently fell to US$145 per oz t in April, 2003. As of July 2008, palladium prices are approximately US$381 per oz t. Current palladium spot price.

Recent years' palladium surplus condition was caused by the Russian government selling off government stockpiles built up during the Soviet Era, at a pace of about 1.6 to 2 million ounces a year. The amount and status of this stockpile is kept as a state secret.

EXCHANGE-TRADED FUNDS

ETFS Physical Palladium (LSE: PHPD) is backed by allocated palladium bullion and was the world's first palladium ETF. Listed on LSE, Xetra, Euronext and Milan.

BULLION COINS AND BARS

A traditional way of investing in palladium is buying bullion coins and bars made of palladium. Available palladium coins include the Canadian Maple Leaf and the Chinese Panda. The liquidity of direct palladium bullion investment is not as good as gold and silver due to low circulation of palladium coins and wider spread between buying and selling price.