Investing in Palladium ETFs
Thursday, January 7th, 2010Michael Johnston submits:
In recent weeks, news that London-based ETF Securities is preparing to launch physically-backed platinum and palladium ETFs rolled through the financial markets, causing tremendous excitement among bulls and inflation bugs alike and sending prices of these metals soaring in anticipation. There are currently multiple exchange-traded products offering exposure to platinum through futures-based strategies (see this guide for an in-depth look at these funds), but the proposed palladium ETF would be the very first of its kind. These funds have been in the works for quite some time, and have the potential to be very powerful investment options.
Creating Controversy
Physically-backed platinum and palladium ETFs have been trading on European exchanges for years, but the idea of introducing similar products to U.S. markets caused a great deal of controversy. The global supplies of platinum and palladium are extremely small, totaling only about 6 million ounces and 8 million ounces per annum, respectively. By comparison, global gold production from mines usually exceeds 2,000 tonnes annually.
