Monday, December 06, 2010

WITE flight

A new ETF was launched Friday and I bought shares today. It is the ETF Securities Physical White Metal Basket Shares, ticker WITE. 

In case this sounds like something you'd serve bread in, it's actually an exchange traded fund that owns three metals in physical form: silver, platinum, and palladium. The value of the shares rises and falls with the value of those metals on the open market.

I believe this is a good bet, and my conviction is so strong that I sold my position in Abbott Labs — which, ideally, I would have held — to raise money to buy a significant (for my little portfolio) amount of WITE.

Silver, you may have noticed, is on a tear and will probably continue for some time (with the usual one-step-back, two-steps-forward action), since Western governments seem determined to destroy the value of their currency to cheapen their debts and, supposedly, stimulate their economies.

Platinum and palladium are used for emissions reduction equipment in cars and trucks, a market that is almost bound to increase worldwide regardless of economic conditions.

The ETF's sponsor, ETF Securities, is also the sponsor of SGOL, which I wrote about here. The silver, palladium, and platinum are audited by the same reputable firm that audits the gold in the vaults for SGOL.

A writer at Seeking Alpha makes the case for WITE. (I learned of WITE Saturday from some smart investors at the stock discussion group I attend.)

The usual disclaimers apply. I have no formal qualifications as an investment adviser. I have often been wrong. I make no recommendations, simply suggest investments on which you might want to do your own due diligence. And since I now have a modest position in WITE, I'm "talking my book." Caveat emptor.


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