January 18, 2011 (FinancialWire) — Comparing performance of the ETFS Platinum Trust ETF (PPLT – NYSE), the SPDR Gold Trust ETF (GLD – AMEX) and the iShares Silver Trust ETF (SLV – AMEX) provides a fair representation of how precious metals are faring in general, as well as which precious metals are increasing and/or decreasing in relative market value.

As of Friday’s close, looking back at the most recent fifty trading sessions, iShares Silver (SLV) is clearly outperforming the other two securities. SLV posted an overall 9.25% ($2.37 per share) 50-day gain on average daily volume of 32,385,152 shares, closing at $27.74 per share. ETFS Platinum (PPLT) was the next-best performer, posting an overall 1.04% ($1.84 per share) 50-day gain on average daily volume of 76,344 shares, closing at $180.24 per share. SPDR Gold (GLD) posted an overall 1.46% ($1.98 per share) 50-day loss on average daily volume of 16,255,952 shares, closing at $132.69 per share.

In our previous report, on December 29, 2010, looking back at the previous fifty trading sessions at that time, all three ETFs had gained overall, with iShares Silver (SLV) clearly outperforming the other two securities. SLV had posted an overall 19.32% ($4.63 per share) 50-day gain on average daily volume of 30,686,792 shares, closing at $29.53 per share. ETFS Platinum (PPLT) was the next-best performer, posting an overall 2.31% ($3.91 per share) 50-day gain on average daily volume of 74,454 shares, closing at $175.04 per share. SPDR Gold (GLD) had posted an overall 0.55% ($0.74 per share) 50-day gain on average daily volume of 16,848,994 shares, closing at $137.22 per share.

About the Investment Instruments:

The ETFS Platinum Trust investment seeks to reflect the performance of the price of physical platinum, less the expenses of the Trust’s operations. The fund is designed for investors who want a cost-effective and convenient way to invest in platinum with minimal credit risk

The SPDR Gold Trust investment seeks to replicate the performance, net of expenses, of the price of gold bullion. The trust holds gold, and is expected to issue baskets in exchange for deposits of gold, and to distribute gold in connection with redemption of baskets. The gold held by the trust will only be sold on an as-needed basis to pay trust expenses, in the event the trust terminates and liquidates its assets, or as otherwise required by law or regulation.

The iShares Silver Trust investment objective is to reflect the price of silver owned by the trust less the trust's expenses and liabilities. The fund is intended to constitute a simple and cost-effective means of making an investment similar to an investment in silver. Although the fund is not the exact equivalent of an investment in silver, they provide investors with an alternative that allows a level of participation in the silver market through the securities market.

ETNs vs. ETFs:

Both ETFs (Exchange-Traded Funds) and ETNs (Exchange-Traded Notes) track an assigned index, trade like a stock and are very liquid. ETFs reduce risk and allow for superior diversification. ETFs are structured such that the shareholder owns a basket of securities. Should the ETF provider go bankrupt or shutdown the ETF, the shareholder will usually receive cash for the market value of the basket of securities. ETNs are unsecured debt instruments. Debt instruments do not own anything but a promise to track an index. At first glance, it would appear that you own commodities with an ETN. However, an ETN allocation is used only as a measure for performance. An investor does not own any commodities, only a promise to pay an investor the theoretical allocation of the commodity index. If an ETN provider should go bankrupt, the investor will not receive his or her investment back. ETNs are debt securities with a stated maturity date. With them, an investor is assuming market risk along with the risk that the ETN's issuer might not be able to make payment on that maturity date.

Both the UBS E-TRACS Short Platinum Excess Return ETN (AMEX: PTD) and the UBS E-TRACS Long Platinum Total Return ETN (AMEX: PTM) are often considered as indicative of platinum performance, as well. PTD offers short exposure to platinum as a futures/commodity play, while PTM offers longer exposure.

Exchange Links: ETFS Platinum Trust ETF (PPLT – NYSE) / SPDR Gold Trust ETF (GLD – AMEX) / iShares Silver Trust ETF (SLV – AMEX)

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