5 Factors Driving the Palladium ETF

All News:

• Platinum and Palladium ETFs are Long-Term Bets
• Nasdaq ETF Near 200-Day Average as Apple, Cisco Weigh
• Bank ETFs Hit Again on Economy, Capital Levels

Precious metals have been the star of the show this year. In a crowded field, the palladium exchange traded fund (ETF) still manages to stand out.

In recent days:

• Palladium’s price has gained on fears that Russia, the world’s largest producer, has exhausted its state stockpiles of the precious metal.
• Rhiannon Hoyle for The Wall Street Journal reports that palladium has also been assisted by a weak dollar, which has made the metal more appealing for overseas investors. [4 ETFs Benefitting From China's Industrial Output.]

Melissa Desroches for International Business Times reports that a host of other, broader factors are helping support the metal’s price, including:

• Automotive demand – palladium is used in catalytic converters.
• Jewelry – palladium is becoming a popular alternative to white gold or silver; it’s lighter, less expensive and requires less care.
• Electronics – palladium has a big role in the production of capacitors and fuel cells.

ETF Securities Physical Palladium (NYSEArca: PALL) is a play on palladium’s spot price, since it holds the physical metal. If you’re looking for an alternative to gold or silver, consider this.

Tisha Guerrero contributed to this article.