“While we remain positive platinum and palladium price fundamentals in the long run, we believe elevated stockpiles have limited recent price rises. Although both markets have become a lot tighter over the past months, we believe the catalyst for a sharp rally would be for one of the top 3 producers (Amplats, Implats and Lonmin) to fail to meet all contractual obligations or to actively purchase metals in the open market to supply its contracts. Nonetheless, PGM prices could be subject to a correction if the heightened risks in the Crimean region and prolonged strikes in South Africa fade or disappear,” notes ETF Securities.
ETFS Physical Palladium Shares
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of GLD and SLV.