Analysis Of Proposed Platinum And Palladium ETF Fundamentals

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July 14, 2009 10:01am ETF BASIC NEWS NYSE:PALL

platinum3ETF Securities USA recently filed with the SEC to launch exchange traded funds covering platinum and palladium. There are currently no exchange traded funds covering these metals available in the United States.  Although the application has been made, ETFS’s plans are likely to be met with resistance from industrial users and may also face a number of regulatory

 challenges. This being said, the Virtual Metals Research & Consulting Group came out with their bi-annual analysis of platinum and palladuim fundimentals which bet’s on the ETF’s approval.

As found on, “Carl Firman, VM Group Metals Analyst, comments:”While our estimate for the likely additional platinum and palladium demand resulting from the proposed introduction of a platinum/palladium ETF in the US is conservative, such an ETF, even on our cautious projections of probable offtake, would certainly support prices, especially since the market is already fairly tight and US investor appetite evidently robust. Gold and silver ETFs in the US are dominant in global precious metals’ ETFs, and we expect any new US platinum/palladium ETF would quickly establish itself as a world leader. A new US ETF would radically expand the landscape for PGM investment opportunities. Moreover, the probability of rising PGM demand in years to come, particularly as the recession ends and the key industrial demand sector, autocatalysts, recovers, should see such an ETF become increasingly popular with investors.”

The White Book’s latest analysis suggests:
The platinum market was in a deficit of 20,300 oz in 2008, while palladium remained in surplus by 626,900 oz. The platinum market deficit will grow expand to 65,200 oz in 2009 and the palladium surplus to 652,900 oz.”

If approved, ETFS’ new funds would allow U.S. investors access to physical platinum and palladium bullion, with the share price of each equal to 1/10th the value of an ounce of the respective metals, according to the ETFS Platinum Trust and Palladium Trust registrations.

You can find the Platinum registration: HERE

You can find the Palladium registration: HERE


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