JOHANNESBURG (miningweekly.com) – The investment banking arm of Absa, Absa Capital, was planning the launch of a series of commodity-linked products, one of which would be an exchange-traded fund (ETF) linked to platinum.

Absa Capital head of ETFs Vladimir Nedeljkovic confirmed that it planned to bring the platinum-linked ETF to market in the second half of this year.

He noted that the bank would also look at similar products for all precious metals, as well as other commodities and commodity indices.

However, he noted that these plans were still at an early stage.

Nedeljkovic said that the bank had based its plans for these products on investor demand, adding that investors had, for example, expressed a desire for a platinum-linked ETF.

News of the possible enlargement of the ETF portfolio beyond gold was well received by two mining analysts canvassed by Mining Weekly Online.

Cadiz Asset Management analyst Peter Major said that there was really a need for such ETFs among producers and investors.

He expressed the hope that an ETF would be created for every metal, saying that investors who wanted direct exposure to a specific metal, such as platinum, would get exactly that.

Johannesburg-based fund manager Vestact director Sasha Naryshkine agreed, saying that it would offer a new point of entry for investors who were bullish on a specific metal.

However, he noted that this would probably be for investors with a shorter view and not for long-term investors, who would probably prefer to invest in tried-and-tested instruments.

Further, he added that a platinum-linked ETF would be on a smaller scale than that of the gold sector, owing to the platinum sector’s lower overall yearly production levels.

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