e-Platinum investment returns edges over e-Gold and e-Silver

24th Sep, 2012e-Platinum investment returns edges over e-Gold and e-Silvere-Platinum launched under e-Series products in April 2012 by National Spot Exchange (NSEL) haveenjoyed considerable popularity. It provides the investors to invest in platinum in demat form which isthe most convenient and safe way of investing in the platinum. In the last three months, e-Platinum hasgiven about 16% return as compared to e-Gold and e-Silver which has given about 8% and 13% returnsrespectively. The e-Platinum has also recorded a high delivery ratio of about 70%. Although gold andsilver are the predominant precious metal for the investors but now there has been a significantincrease in platinum investments.The reasons to invest in e-Platinum for better investment returns are:• Potentially cheaper to have price exposure to platinum price as compared to otheravailable avenues.• Ideal for retail investor as minimum lot size to trade is one unit.• No storage and security issue for investors.• Transparent pricing.• Can be traded online on Exchange platform like buying / selling a stock.Platinum is the rarest of all precious metals. It is known for its catalytic properties and resistance tocorrosion. It plays a role in the manufacturing of gasoline, fiberglass and catalytic converters. It is alsowidely used in the jewelry, electrical, chemical and medical industries. Thus, Platinum has a variety ofstrategic applications that add to its universal demand. Rapid demand growth and limited supplies havecontributed to platinum’s popularity with investors; since June 2012 it has risen about 21.0 % ininternational market till now. Usage in established markets is increasing and new markets are constantlybeing developed which is a clear indication that demand for platinum is high and has good investmentpotential.The price of platinum is expected to rise in the periods to come, as the demand for platinum jewelryincreases and the automobile industry regaining its strength. So this is a perfect time to invest in e-Platinum in demat form which emulate the price of physical platinum in the precious metal market. e-

24th Sep, 2012platinum is backed by the physical platinum which is securely stored in Exchange designated vaults. Itgives the opportunity for the investors to buy units of Platinum electronically in the multiples of 1 gramand give the flexibility to sell, hold or take physical delivery through the same platform.The Exchange has made provision of physical delivery of Platinum in various denominations in the formof granules/shots imported from London platinum and palladium market (LPPM) approved suppliers. Tostart with, the physical delivery can be available at Delhi, Mumbai, Jaipur and Hyderabad. Manyinvestors are now including e-platinum in their portfolio along with e-Gold and e-silver. In the comingmonths, e-platinum is considered an excellent investment medium; it can act as a hedge againstinflation as well as provide long or short term profit.