Physical Platinum vs ETFs
Investors interested in platinum often choose between owning the actual metal or buying exchange-traded funds, known as ETFs, that track its price. Physical platinum means buying bars or coins you can hold, store, or even redeem later, while ETFs are shares traded on stock exchanges like stocks, giving exposure to platinum without handling the metal itself. For details on one physical option, see https://sprott.com/investment-strategies/exchange-listed-products/physical-bullion-funds/platinum-and-palladium/[1].
With physical platinum, you get real metal that is fully allocated and stored securely, often in vaults. The Sprott Physical Platinum and Palladium Trust, for example, holds over 238,000 ounces of platinum and 169,000 ounces of palladium as of late 2025, with a total value around $752 million. It trades on exchanges but lets investors redeem shares for actual metal, offering a direct link to the commodity. This setup provides peace of mind since the metal is unencumbered, meaning no loans against it, and storage is professional.[1]
ETFs like abrdn Physical Platinum Shares (PPLT) or GraniteShares Platinum Trust (PLTM) also back their shares with physical platinum, tracking the London PM Fix price per ounce. PPLT, launched in 2010, has an expense ratio of 0.60 percent, while PLTM, from 2018, charges 0.50 percent, making them cheaper annually than some physical trusts. For a comparison of PPLT and spot platinum, check https://portfolioslab.com/tools/stock-comparison/PPLT/PL=F[2]. These ETFs show slightly higher volatility than pure spot platinum, with PPLT at 14.49 percent versus 13.23 percent for the metal itself.[2]
Costs matter a lot in this choice. Pure physical platinum bars or coins involve buying premiums over spot price, plus ongoing storage and insurance fees you arrange yourself, which can add up. ETFs bundle these costs into their expense ratios, often under 1 percent, and trade instantly during market hours. Sprott’s trust has a 0.92 percent management fee, higher than PLTM’s 0.50 percent but lower than its earlier 1.02 percent figure in some reports.[1][3][4] Invesco Physical Platinum (SPPP.L) stands out with just 0.19 percent fees and lower volatility at 10.48 percent compared to PPLT’s 13.85 percent.[5]
Liquidity is easier with ETFs since you sell shares anytime markets are open, no need to find a buyer for bars. Physical platinum shines for long-term holders who want tangible ownership and potential tax perks. In the U.S., physical bullion trusts like Sprott may offer better tax treatment than standard ETFs or direct metal ownership.[1] Platinum ETFs gained strong returns in 2025, with PPLT up 96 percent year-to-date in some analyses.[6]
Risks differ too. Physical gives full control but exposes you to theft or storage issues if not vaulted properly. ETFs carry counterparty risk, though minimal for physically backed ones, and can trade at premiums or discounts to net asset value. Sprott’s trust recently traded at a 5.19 percent discount.[1] Volatility comparisons show physical trusts like Sprott at 11.13 percent, steadier than PLTM’s 12.44 percent.[4]
Paper platinum options, including ETFs, cost less upfront than physical but lack the hands-on appeal.[7] For platinum-focused investors, blending both might work, but it depends on your goals like liquidity needs or desire for actual metal.
Sources
https://sprott.com/investment-strategies/exchange-listed-products/physical-bullion-funds/platinum-and-palladium/
https://portfolioslab.com/tools/stock-comparison/PPLT/PL=F
https://portfolioslab.com/tools/stock-comparison/PLTM/PPLT
https://portfolioslab.com/tools/stock-comparison/SPPP/PLTM
https://portfolioslab.com/tools/stock-comparison/SPPP.L/PPLT
https://www.etftrends.com/2025-etfs-crypto-defense-commodities/
https://coinweek.com/paper-vs-physical-gold-the-essential-precious-metals-investment-guide-for-2025/
https://portfolioslab.com/tools/stock-comparison/SPPP.L/PALL
https://danelfin.com/is-sprott-physical-platinum-and-palladium-trust-stock-a-buy-now