Gold may get the shine, but to palladium investors, that’s just fine. In the case of the Aberdeen Standard Phys PalladiumShrs ETF (NYSEArca: PALL), the fund is up 37.19% year-to-date based on Yahoo Finance.
“While many investors are focused on gold, palladium has been far and away the best performing precious metal for the past several years. The strong, upward price appreciation since 2016 of the collective basket of metals to be produced by Platreef when commercial operations commence at the Tier One discovery is encouraging,” said Ivanhoe Mines’ co-chairman Robert Friedland. “Given recent transactions in the platinum-group-metals market, we are exploring a number of options that can help us unlock Platreef’s incredible value for the benefit of all of Ivanhoe’s stakeholders.”
PALL seeks to reflect the performance of the price of physical palladium, less the expenses of the Trust’s operations. The fund is designed for investors who want a cost-effective and convenient way to invest in palladium with minimal credit risk.
Key features of the fund per PALL’s fact sheet:
- Physically-Backed: Cost-effective and convenient access to physical palladium.
- Transparency: The metal is held in allocated bars and a bar list is posted daily on aberdeenstandardetfs.us
- Pricing: The metal is priced off the LPPM’s specifications for Good Delivery, which is an internationally recognized and transparent benchmark for pricing physical palladium.
- Vault Location: Metal is held in London, United Kingdom at a secured vault of J.P. Morgan Chase Bank, N.A.
- Vault Inspection: Inspectorate International, a leading physical commodity auditor, inspects the vault twice per year (including once at random).
Precious Metal Staples
For a diverse precious metals portfolio, it’s also necessary to add the staples—in this case, gold and silver. As rates in the U.S. have been falling and as the trade war with China rages on, more investors have been piling into alternative safe haven assets like gold.
Furthermore, gold can see more activity from one of its largest consumers—China. As China’s economy starts to see tangible effects stemming from the trade war, more gold buying could be ahead—trade deal or no trade deal.
Bulls or bears can take advantage of leveraged or non-leveraged funds in precious metals. Investors looking to invest in precious metals ETFs could try the SPDR Gold MiniShares (NYSEArca: GLDM) and SPDR Gold Shares (NYSEArca: GLD) as a great way to play the market, while silver bulls could try the iShares Silver Trust (SLV) and the Aberdeen Standard Physical Silver Shares ETF (SIVR), two of the largest exchange traded funds backed by holdings of physical silver.
For more alternative ETF investing ideas, visit our Alternatives Channel.