ETFS Physical Platinum Shares is a Buy, Says Zacks

Zacks Investment Research reported that investors interested in the ETFS Physical Platinum Shares (ARCA:PPLT) ETF should keep an eye on conditions in South Africa as violence and labor unrest could cause volatility for the ETF. For now, the firm is maintaining a “buy” rating on the fund.

As quoted in the market news:

Given this potential powder keg, investors may want to pay close attention to the ETF Securities Physical Platinum Shares ETF ( PPLT ) . This represents the best pure play investment on platinum in physical form, and it could be in focus given the rising tensions in the region, and the importance of South Africa to platinum production overall.

Shares have already started to react a bit to this possibility, as PPLT rose by about 3.1% in Monday trading, representing a nice reversal from the previous month or so. In that time period, PPLT struggled like many other commodities, slumping by about 3% in the time frame.

Yet with these fresh worries acting as a catalyst for platinum, this new upward trend could hold for some time. That is why we are maintaining our Zacks ETF Rank #2 (Buy) on this fund and are looking for this precious metal to be a top commodity performer this summer, and especially so if more trouble strikes the South African market in the weeks ahead.

Click here to read the full Zacks Investment Research report.