Gold Who? Platinum and Palladium ETFs Shine
January 18th, 2011 at 6:00am by Tom Lydon
Gold and silver exchange traded fund (ETF) investments are yesterday’s news when compared to platinum and palladium ETFs. According to a new report from Barclays Capital, holdings in exchange-traded products backed by platinum group metals have hit fresh peaks, reports Commodity Online.
Two of the top-performing ETFs last week were ETFS Physical Platinum (NYSEArca: PPLT), which gained 4.6%, and ETFS Physical Palladium (NYSEArca: PALL), which had an even better 6% gain. [Gains In Store for Platinum and Palladium ETFs?]
While gold and silver struggle to hold onto record highs, platinum and palladium have become the metals of the moment.
Factors pushing the demand are increased auto sales in China and a growing trend toward platinum jewelry, which is more durable than gold jewelry. Slow mine supply growth and uncertainty in the global economy are also lending support to prices and investor interest.
Sam Coventry for Economy News reports that palladium was the strongest performer at year end, almost doubling over the year from just above $400/oz at the start of 2010, to finish the year testing the $800/oz mark. [Why Precious Metals ETFs Are the Best Way To Go.]
Can the uptrend continue in 2011? For now, the answer may well be yes (but have that exit strategy if platinum starts acting like gold has been).
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.