While Gold prices, and precious metals in general have crept higher in recent weeks off of lows touched in both early and late May, we have noted recent activity in an ETF that tracks Palladium prices, ETFS Physical Palladium Shares (NYSEArca: PALL).
Gold prices have rallied approximately 6% from the May lows, and Palladium prices have risen closer to 9%. PALL has spent the last several trading sessions bumping up against its 50 day moving average, but it has failed to pierce this level convincingly as of yet.
Palladium as a metal is heavily utilized in the auto industry, particularly as an essential component in catalytic converters. Additionally, Palladium also plays roles in dentistry, electronics, jewelry, fuel cells, and has other applications. [Palladium, Platinum ETFs Caught in Risk-Off Trade]
Year to date, PALL has fallen 3.83% versus GLD (SPDR Gold) for instance up 3.39% during the same time period. In the trailing one year period, PALL has lagged even more, falling 16.19% versus GLD up 4.82%.
Those whom believe the path for Palladium prices will continue to be “up”, will likely not only consider PALL, but a leveraged “long” ETN that focuses on the metal, LPAL (VelocityShares 2X Long Palladium ETN) as well. Similarly, for those short term trading types whom want to play the short side of Palladium, and or/for institutional hedging, IPAL (VelocityShares 2X Inverse Palladium ETN) will be of interest.
ETFS Physical Palladium Shares