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The Noble Precious Metal
ETF Securities – The Noble Precious Metal. Once known as “white gold,” platinum is one of the rarest precious metals in the world. Platinum is imbued with unique properties that make it highly sought-after for use in jewelry, industrial applications, and as an investment. Because it’s extremely resistant to tarnishing and corrosion, it’s referred to as a “noble” metal. To better familiarize you and your clients with the metal that Italian physician Julius Scaliger called “platina” (little silver), here are a few salient facts about platinum.
Supply & demand
According to the World Platinum Investment Council, the platinum market is likely to be in a deficit from 2016 to 2021, a shortage that equates to 250,000 ounces per year. It is predicted that this imbalance should help drive higher metal prices over this period. The remainder of platinum’s annual supply comes from jewelry scrap, which increases during economic downturns, and auto catalyst scrap, which peaks during rising economic activity and broader commodity price increases.
The majority of platinum’s demand comes from four sectors
37-42% Automotive
Auto catalysts, spark plugs, and O2 sensors for both diesel and electric cars
31-38% Jewelry
China accounts for +65% of platinum’s jewelry market, demand from India has risen +10x in the past 7 years, in the U.S., platinum is the #1 choice for engagement rings.
18-24% Industrial
Liquid crystal displays, optical and ophthalmic devices, servers supporting cloud storage, pacemakers, surgical instruments.
2-11% Investment
Platinum-backed ETFs are a growing source of investment for individuals and institutions
Did you know ?
- ALL THE PLATINUM EVER PRODUCED WOULD ONLY COVER YOUR ANKLES IN ONE OLYMPIC-SIZED POOL
- SOUTH AFRICA IS THE WORLD’S LARGEST PLATINUM PRODUCER, ACCOUNTING FOR SOME 70% OF GLOBAL SUPPLY, ANNUALLY
- PLATINUM IS VERY MALLEABLE, MEANING IT CAN BE POUNDED INTO A SHEET WHICH IS AS THIN AS 100 ATOMS
Portfolio considerations
Platinum is a risk management tool since it is a diversifier of equity exposure and equity risk. It is also a capital appreciation tool. It’s highly tied to the economic cycle, supportive fundamentals, and tight market structure giving it upside potential as an investment. For perspective, the price of platinum has risen almost 400% since 1975.
Key drivers for platinum
GLOBAL CONSUMER – over 40% of annual demand has stemmed from consumer sectors10
ECONOMIC CYCLE – overall global economy drives platinum demand as most of its uses are tied to industrial production
SOUTH AFRICAN RAND – with the majority of supply coming from South Africa, platinum has a high correlation to the country’s currency, the South African Rand
Our product
ETFS Physical Platinum Shares (PPLT)
PPLT is the only platinum exchange traded fund (ETF) wrapper in the United States. PPLT provides cost effective, convenient access to platinum in the form of physically-backed bars held in a secured vault in London, which is inspected twice a year (including once at random). A bar list is posted daily on:
etfsecurities.com
DISCLOSURE
The ETFS Platinum Trust is not an investment company registered under the Investment Company Act of 1940 or a commodity pool for purposes of the Commodity Exchange Act. Shares of the Platinum Trust are not subject to the same regulatory requirements as mutual funds. These investments are not suitable for all investors. Trusts focusing on a single commodity generally experience greater volatility. There are special risks associated with short selling and margin investing. Please ask your financial advisor for more information about these risks.
The value of the Shares relates directly to the value of the platinum held by the Trust and fluctuations in the price of platinum could materially adversely affect an investment in the Shares. Several factors may affect the price of platinum including: (1) A change in economic conditions, such as a recession, can adversely affect the price of platinum. Platinum is used in a wide range of industrial applications, and an economic downturn could have a negative impact on its demand and, consequently, its price and the price of the Shares; (2) Investors’ expectations with respect to the rate of inflation; (3) Currency exchange rates; (4) Interest rates; (5) Investment and trading activities of hedge funds and commodity funds; and (6) Global or regional political, economic or financial events and situations. Should there be an increase in the level of hedge activity of platinum producing companies, it could cause a decline in world platinum price, adversely affecting the price of the Shares.
Commodities and futures generally are volatile and are not suitable for all investors
Commodities and futures generally are volatile and are not suitable for all investors. Shares in the Trust are not FDIC insured and may lose value and have no bank guarantee.
Investors buy and sell shares on a secondary market (i.e., not directly from trust). Only market makers or “authorized participants” may trade directly with the fund, typically in blocks of 50k to 100k shares. The Fund’s net asset value per share (NAV) is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. Market Price returns are based on the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times.
Carefully consider the fund’s investment objectives, risk factors, and fees and expenses before investing. For further discussion of the risks associated with an investment in the funds please read the prospectus at www.etfsecurities.com/etfsdocs/USProspectus.aspx. Or visit the ETF Securities website: www.etfsecurities.com.
ALPS Distributors, Inc. is unaffiliated with J.P. Morgan Chase Bank, N.A. and The Bank of New York Mellon.
ETFS Platinum Trust shares are not guaranteed by J.P. Morgan Chase Bank, N.A. or anyone else: ETFS PlatinumTrust shares are direct, limited recourse obligations of the Trust alone and not obligations of any other person including J.P. Morgan Chase Bank, N.A., any member of the JPMorgan Chase Group or its affiliates. ALPS Distributors, Inc. is the marketing agent for ETFS Platinum Trust.
Stablecoins are digital currencies tied to assets like the U.S. dollar, offering the price stability needed for payments. They maintain their peg by being backed 1:1 by their underlying fiat currency, with issuers holding equivalent amounts in cash and cash equivalents, making stablecoins a digital representation of those reserves. Their market has doubled to over $235 billion, with daily usage nearly doubling in two years.
Why are stablecoins making headlines now?
Due to their clear product-market fit and growing mainstream adoption, stablecoins have become a top priority for regulation, with both industry leaders and policymakers calling for swift action.
On April 4, the Securities and Exchange Commission’s Division of Corporation Finance finally clarified that stablecoins are not securities if backed one-for-one by USD or similar assets and used for payments or value storage. These “Covered Stablecoins” are not marketed as investments, lack profit incentives, and include protections like reserves, making securities law registration unnecessary for issuance or redemption.
The GENIUS Act, introduced in February and advanced by the U.S. Senate Banking Committee in March, marks a major step toward creating a clear legal framework for stablecoin issuance and oversight. This clarity is driving momentum as Fidelity is set to launch its own stablecoin, and Bank of America is preparing to follow it once legislation is finalized.
Globally, the European Union’s Markets in Crypto Assets (MiCA) framework has already come into effect, reinforcing a broader shift toward formal integration of stablecoins into traditional finance. These developments reflect a growing consensus that stablecoins are emerging as essential infrastructure for global payments, treasury management, and digital asset adoption.
What are the benefits of stablecoins?
Stablecoins are digital currencies designed for fast, low-cost, and stable transactions. Since their launch in 2014, they’ve become a go-to tool for online payments, especially cross-border transfers. As they’re pegged to stable assets like the U.S. dollar or euro, they avoid the wild price swings seen in other cryptocurrencies.
They’re accessible to anyone with internet, making them especially valuable in regions with high inflation or limited banking access, like Argentina or Turkey.
With some built on public blockchains, stablecoins offer transparency, letting users track transfers and supply in real time. For institutions, they also simplify treasury management by acting as efficient digital cash that can be deployed instantly.
Who are the major players in the stablecoin race?
Tether (USDT) and Circle (USDC), the two largest stablecoin issuers, collectively hold over $204 billion in U.S. Treasuries, making them the 14th largest holders globally. Their combined treasury holdings surpass those of entire nations, including Norway and Brazil.
USDT leads with $144 billion in circulation; USDC, backed by Coinbase and known for compliance, has become a trusted digital dollar across global finance.
Why stablecoins matter: A revenue engine for blockchains
Stablecoins generate steady revenue for blockchains like Ethereum and Solana by driving transaction fees with each transfer. With trillions in annual volume, they help sustain network activity beyond speculation.
On Ethereum, for example, USDT and USDC transactions are major contributors to daily gas fees. Year to date, Tether ranks #3 and USDC ranks #5 in terms of total gas consumed. Tether and Circle also dominate daily transaction activity on Ethereum, averaging approximately 12 million and 6 million transactions per day, respectively, making them the top two entities on the network by daily transaction count.
Meanwhile, on Solana, stablecoin activity has surged, helping sustain validator rewards and strengthen protocol economics. In addition to the mainstream utility, stablecoins represent reliable, protocol-level cash flow, making them crypto’s killer use case.
Research Newsletter
Each week the 21Shares Research team will publish our data-driven insights into the crypto asset world through this newsletter. Please direct any comments, questions, and words of feedback to research@21shares.com
Disclaimer
The information provided does not constitute a prospectus or other offering material and does not contain or constitute an offer to sell or a solicitation of any offer to buy securities in any jurisdiction. Some of the information published herein may contain forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those in the forward-looking statements as a result of various factors. The information contained herein may not be considered as economic, legal, tax or other advice and users are cautioned to base investment decisions or other decisions solely on the content hereof.
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