Precious Metal ETFs Have Opportunity to Shine

Along with their safe-haven aspect, some precious metals also enjoy strong industrial demand in a growing global economy. For instance, platinum can find increased demand out of China. Platinum is a key component in autocatalysts found in diesel engine automobiles. Additionally, palladium, which benefits from greater sales of gasoline vehicles, also enjoys improving supply and demand dynamics, especially with an ongoing supply deficit.

“Platinum has many factors supporting a positive outlook including higher gold prices, an appreciating South African Rand, and most notably anticipated higher Chinese demand for diesel ahead of tougher emission standards,” Gold said. “In January 2017, the ‘China V’ emission standards went into effect for all new gasoline vehicle sales and registrations (a boost for palladium) while the same standards will go into effect for all new diesel vehicles (key for platinum) in January 2018.”

Related: Palladium, Platinum ETFs May Continue to Shine

Investors who want to use precious metals as a short-term hedge and even a long-term play on improving fundamentals may consider a number of physically backed metals-related ETFs as a way to diversify a traditional stock and portfolio, including ETFS Physical Swiss Gold Shares (NYSEArca: SGOL), ETFS Physical Silver Shares (NYSEArca: SIVR), ETFS Physical Platinum Shares (NYSEArca: PPLT) and ETFS Physical Palladium Shares (NYSEArca: PALL). ETF investors can also use the ETFS Physical Precious Metals Basket Shares (NYSEArca: GLTR) as a catch-all of all four precious metals.

For more information on the metals market, visit our precious metals category.