Helped by Russia’s invasion of Ukraine and subsequent annexation of Crimea coupled with labor strife in South Africa, the ETFS Physical Palladium Shares (NYSEArca: PALL) surged 6.5% in the first quarter. The ETFS Physical Platinum Shares (NYSEArca: PPLT) also traded slightly higher. Russia is the world’s largest palladium producer. South Africa is the largest platinum producer and second-largest palladium producer. [Fundamentals Lift Palladium, Platinum ETFs]
“An extended strike in South Africa, where over 70% of the world’s platinum supply is sourced, raised concerns of platinum shortages this year, pushing up the price and causing investors to increase allocations to the metal. With few signs of the strike being resolved any time soon, further price gains and inflows seem likely,” said ETF Securities.
SPDR Gold Shares
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of GLD and SLV.