“If the palladium ETF follows the same course as Absa Capital’s platinum ETF, which was launched at the end of April 2013, a great deal of supply could be stripped from the market, thereby contributing to a noticeable increase in the price of palladium,” Commerzbank said in a research note. “Within just four months of its launch, Absa Capital’s platinum ETF became the world’s biggest platinum ETF and now has a market share of 37%, with almost 945,000 ounces.”
Commerzbank calculates that palladium ETFs currently hold 2.1 million ounces of the precious metal, or about four months of global mining production.
ETFS Physical Palladium Shares
For more information on palladium, visit our palladium category.
Max Chen contributed to this article.