Palladium prices hit a two-year high on Monday but crude oil faltered after making early gains while gold moved lower as the dollar strengthened. Palladium reached $477 a troy ounce before easing back to $467, down 1.7 per cent. Palladium prices have risen by a quarter since November as government sponsored car scrappage schemes have supported demand for the metal which is widely used in vehicle catalysts,” Chris Flood Reports From Ninemsn.
Flood goes on to say, “Hedge funds have been increasing their bets on palladium prices rising further with the speculative net long position standing at a record high. The launch of palladium and platinum exchange traded funds in the US has also attracted fresh investor inflows for both metals.
Michael Jansen at JP Morgan said that investments in ETFs “crowded out” the metal available to other buyers. “We continue to see the combination of a structurally robust market in terms of supply and demand factors, coupled with physical ownership (via ETFs) by investors as bullish for prices,” said Mr Jansen.
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Here are some details on the Platinum and Palladium ETFs:
– ETFS Physical Platinum Shares (Ticker: PPLT)
– ETFS Physical Palladium Shares (Ticker: PALL)
Highlights of the New Products:
Unique offering: PPLT and PALL are the first Platinum Group Metal (PGM) products to be launched in the US ETF market and offered to US investors.
Physical Platinum (PPLT) and Physical Palladium (PALL): Each Trust will custody all of its physical platinum and palladium in plate and ingot form in a secure London Platinum Palladium Market (LPPM) (4) approved vault which meet LPPM “good delivery standards”.
Transparency of Holdings: Platinum and Palladium plates and ingots are stored on behalf of each trust will undergo a bi-annual audit performed by an independent external bullion specialist auditor. All identification numbers and audits will be published on www.etfsecurities.com Exposure into the Industrial Cycle: In addition to having precious metal attributes, platinum and palladium are used as commodities in specific industries such as the automotive industry which gives investors direct exposure into the industrial cycle and overall economic recovery.
The objective of the ETFS Platinum Trust’s (PPLT) shares reflect the performance of the price of Platinum, less the Trust’s expenses. The Trust is open ended and is designed for investors who want a cost-effective (1) and convenient (2) way to invest in Platinum as well as diversify their precious metal holdings. Both products have an expense ratio of 0.60% per annum. (3)
The objective of the ETFS Palladium Trust’s (PALL) shares reflect the performance of the price of Palladium, less the Trust’s expenses. The Trust is open ended and is designed for investors who want a cost-effective (1) and convenient (2) way to invest in Palladium as well as diversify their precious metal holdings.
ETFS Platinum Trust (PPLT) and ETFS Palladium Trust (PALL) are both backed by Platinum and Palladium allocated bullion in plate and ingot form stored in secure vaults in London & Switzerland by the Custodian, JPMorgan Chase Bank, N.A, one of the world’s leading Custodians for precious metals. The Shares represent an interest in physical platinum and palladium bullion owned by the Trust. The physical platinum and palladium allocated bullion of the Trust is subject to minimal counterparty or credit risks, which contrasts with other offerings that achieve bullion exposure through the use of derivatives.