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The Bull Case
CNBC.com | March 12, 2012 | 11:28 AM EDT

Both metals are mined primarily in South Africa, where poor profitability, productivity and unrest among union workers are hampering supply. Due to the profitability issue, Malan favors investing directly in the commodities rather than mining stocks.

You can do this through ETFs that hold bars of the metals like ETFS Physical Platinum Shares and ETFS Physical Palladium Shares or exchange traded notes , ETNs, that invest in platinum futures contracts like iPath Dow Jones-UBS Platinum Total Return Sub-Index ETN.

Copper is also thriving due to supply/demand imbalances. A wide variety of uses makes this industrial metal a bellwether of global growth.

Market watchers expect copper demand to increase at a 4 percent annual rate while the world’s largest producer, Freeport McMoRan, struggles to keep its production growth at 3 percent.

Copper supply faces secular headwinds , which should keep prices strong, says Annapolis, Md.-based commodity asset manager Adrian Day. Production has fallen the last two years despite record prices.

Most of the world’s easily accessible copper deposits have been exploited, making discovery and extraction of new copper expensive and time consuming. The latest major copper discovery was made in Mongolia in 1997 but production there won’t commence for two more years.

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