The success of gold and silver exchange traded funds (ETFs) has brought interest to the idea of a platinum or palladium ETF. The market for platinum is smaller and less liquid than the precious metals and sourcing physical stocks to underpin them would be difficult. Due to the number of regulations in North America, London or Zurich is a good launching ground, and they’re the biggest markets, according to Viwe Tialeane and Charlotte Matthews of Resource Investor.

The biggest demand for platinum is from the automotive industry and the jewelry sector. The supply for palladium is on the rise and the growth of South African platinum will unlikely overwhelm demand. The expansion in mining and processing capacity in South Africa can and will rise. Although palladium was undervalued, it still rose faster than platinum between January and September.

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.

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