With platinum at a 6 month low of US$930/oz, earlier this week I topped up my holding in the ETFS Physical Platinum ETF (PHPT). The fund holds the physical metal with each unit of the fund back by just under 1/10th of an ounce . I bought a further 50 shares at $88.51.

The logic is unchanged since I first bought into this ETF – there is lots of more complicated analysis behind my thinking, but in very simple terms the 5yr high for platinum was at US$1,734/oz and the 5 year low at $816/oz. A very unequal risk reward relationship

At current prices, producers have to cut supply further or at the very least not invest in new capacity or they simply can’t survive (as good reason to be buying the ETF and a bit cautious on the producers still).

Following this purchase, I now hold 15% of the Contrarian Portfolio in PGMs.