Back to top  ETF News And Commentary  Platinum is one of the
most popular niche commodities and can be considered an
extremely lucrative investment avenue. This metal is also seeing
more interest thanks to its role as a diversification agent for
investors who are heavy in gold and silver, but still want to
remain exposed to the precious metal group.  At present,
however, the price of the metal has plunged immensely and
appears to be undervalued at current levels. This is largely due
to platinum’s high beta standing and dependence on more cyclical
corners of the market (Top Three Precious Metal Mining ETFs).
Platinum Price Drivers  There are various factors which act as a
catalyst for the increase in prices of platinum. Firstly, the
automotive industry is a big driver of demand in the platinum
market, specifically in catalytic converters to manage vehicle
emissions.  However, a slowdown in many key markets and
relatively high oil prices have pushed demand for autos lower,
driving the price of platinum lower.