The Silver Eagle shortage first began in February 2008. The US Mint became so overwhelmed with orders for the popular silver bullion coin that they were forced to suspend taking new orders. The suspension was only in place until March 2009, however, sales were resumed on a rationed basis. Authorized purchasers were limited in the number of coins that they could order. Early suggestions indicated that the rationed amounts covered only a fraction of the overall demand.

More than one year later, there are some indications that the situation may finally be abating. As I mentioned in my post on the US Mint's March 2009 Bullion Sales, sales of silver and gold reached extremely high levels. Sales of silver coins were actually the highest monthly total since 1986. Since these are rationed sales, the high level was more of an indication of reduced supply constraints than increased demand.

Recently, there have been more indications at the dealer level that the shortage may be ending. One  dealer has reported that delays for delivery of Silver Eagles are shortening, and premiums for the coins is declining. At the height of the shortage premiums were as high as $4.50 over the spot price of silver. Premiums have now pulled back to around $3.00 over spot.

The same firm already offers ETFs for platinum and palladium which trade in Europe. According to the Wall Street Journal, the platinum holdings for the ETF approach 500,000 ounces.

Rumors of a platinum ETF for the US market briefly made the rounds back in May 2007 after the launch of the European ETFs. The rumors were quickly squelched as it was viewed as unlikely that the SEC would approve such a listing. At the time, the world's largest platinum producers were reportedly unsupportive of the idea and pressure from the US auto lobby against the ETF was viewed as likely.

With platinum more than 50% off its peak and auto manufacturers dealing with larger issues, there doesn't seem to be as much resistance this time around.

Here you can view the SEC filings for the proposed platinum and palladium ETFs. The filings indicate that the price per share would be equal to the value of one-tenth of an ounce of each metal.Today, platinum traded at $1,175 and palladium traded at $231. The filings include world supply and demand figures for the metals for the past ten years. In 2008, reported supply exceeded reported demand for both platinum and palladium.

The ETFs would be launched at a time when obtaining physical platinum and palladium for investment continues to be difficult or at high premiums. In order to buy physical platinum in coins or bars, premiums can be $100 or more - if you can find them. The US Mint delayed the 2009 launch of their platinum bullion product the Platinum Eagle. This delay has continued without any update. Physical palladium for investment is usually obtained in bars. The Royal Canadian Mint briefly offered the Palladium Maple Leaf from 2005 to 2007, but ended the program due to low demand.

Disclosure: Long physical platinum