Three Precious Metal ETFs that you should own in your portfolio now

By Jason Black


Exchange traded funds, or ETF's give investors both large and small a liquid vehicle for gaining some exposure to commodities markets while limiting the twin drawbacks of high capital requirements and non liquidity. Commodity ETFs are just as liquid as stocks or bonds, and many have extremely competitive share prices, allowing even small investors to get their feet wet in the commodities market without needing to take out a second mortgage.

Some of the best types of commodity ETFs are precious metal ETFs. This sub-sector of commodities is in high demand due to the excessive money printing the United States and European countries have conducted in recent years.

Here are a few of my favorite precious metal ETFs.

ETFS Physical Platinum Shares (PPLT). The largest physically backed platinum based commodity ETF on the market, this ETF holds over $600 million in physical platinum bullion.

iShares Silver Trust (SLR). A $10 billion fund, this commodities ETF is similar to GLD in that its holding are made up of physical precious metals, in this case pure silver bullion. While profits this year have been less than spectacular, silver potentially faces a large increase in value due to its increasing popularity as a cheaper alternative to gold circuitry in the electronics industry.

ETFS Physical Precious Metal Basket Shares (GLTR). This fund holds $250 million in assets and trades at about $100 per share. It provides a high level of diversification as its holding are made up of physical bullion of gold, silver, platinum, and palladium.

This is just the tip of the iceberg. You can find tons of commodity etfs to invest in by doing a little research on-line.




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