After ETF Gold , is it time for Exchange Traded Fund in Silver & Platinum ?



Commodity trading in gold futures and silver futures are already popular in India . Apart from that ,eight  Gold ETFs (exchange traded fund ), introduced some four years ago , are giving excellent returns in the last four years.If you want to know what is Gold ETF , read four answers to simplify what is Gold ETF. The popularity of gold in India has seen different types of trades –physical commodity trade , gold mutual fund , and ETF gold.

Like gold ETF, companies involved in commodity trades  , want that other metals specially silver and platinum should also have the same facility of trade as gold ETF .But the regulatory rules have so far prohibited various companies from launching ETFs in precious metals like silver and platinum. Typically, ETFs operate in a format similar to equities, as they are traded on equities exchanges. While Gold ETFs are regulated by equities market regulator-, Securities and Exchange Board of India (SEBI), the Silver ETFs are argued to be regulated by Forward Markets Commission (FMC), the commodities market regulator in India. So the power to regulate is the real bump in the ways of introducing the ETF silver and platinum.

Silver like gold is a hot investment in India. India’s silver imports, which in US dollar terms were $309.8m in June 2010, up 854% on the year, while in the first six months of 2010 they are up 579%, at $1.69bn. As gold has become too expensive, it is silver which has become first choice for many Indian investors.

Globally, with gold prices having just scored a new all-time record high and with silver futures prices still not even close to the all-time high, many investors reckon silver futures are still a buying opportunity with still more upside price potential in the coming weeks and months.