What's the best way to get involved with Palladium investing?

kmgilroy89 · Feb 20, 2022

Russia produces 40%.

ph1l · Feb 20, 2022

https://www.investopedia.com/articles/etfs/071716/top-3-etfs-exposure-palladium-pall-sppp.asp

3 Funds With Exposure to Palladium

By
DAVID DIERKING

Updated January 24, 2022
Reviewed by
CIERRA MURRY
Fact checked by
TIMOTHY LI
Exchange-traded funds (ETFs) that offer investors exposure to precious metals primarily focus on gold and silver. But a lesser-known option is palladium, a silvery metal used mostly in catalytic converters but also has applications in jewelry, electronics, and dental fillings.1 Palladium and other platinum-group metals, such as rhodium and ruthenium, are somewhat rare, keeping their prices relatively high.

The U.S. is a relatively minor producer of palladium, generating an estimated 14,000 kilograms in 2020. Russia was the biggest producer, with 91,000 kilograms, followed by South Africa at 70,000 kilograms.2

Palladium prices have historically been fairly volatile. Prices peaked at more than $3,000 per ounce in May 2021 before plummeting to less than $1,600 by December 2021. Palladium has recovered somewhat since then, trading for around $2,000 an ounce as of early 2022.3 Investors interested in adding palladium to their portfolios might find the easiest path is through ETFs or similar vehicles.

KEY TAKEAWAYS

There are several exchange-traded funds that invest in palladium, a rare metal with industrial and other applications.

The Aberdeen Standard Physical Palladium Shares ETF is a pure-play palladium ETF.4

Palladium prices are volatile, largely because the market is small and easily moved by supply-and-demand dynamics.

1. Physical Palladium Shares ETF
ETF options for investing in palladium are relatively limited, but the Aberdeen Standard Physical Palladium Shares ETF (PALL) is perhaps the largest. As of Dec. 31, 2021, the fund held more than 310,700 troy ounces at a secured vault in London.4

PALL fund may be the purest palladium play given that its prices derive directly from the London Platinum and Palladium Market, a major trading center for platinum-group metals. The fund was founded in December 2009 and has returned more than 12% annually since its inception. The annual expense ratio is 0.60%.4

2. Sprott Physical Platinum & Palladium Trust
Like the Physical Palladium Shares ETF, the Sprott Physical Platinum & Palladium Trust (SPPP) also holds physical bullion as opposed to derivative securities. As of Dec. 31, 2021, the ETF held more than 53,000 ounces of platinum and 41,000 ounces of palladium.5

The ETF has returned around 4% annually since its inception in December 2012. Trust unitholders may redeem their units for physical platinum or palladium on a monthly basis if they meet minimum redemption requirements. The fund has an annual expense ratio of 1.01%.5

3. Physical Precious Metals Basket Shares
The Aberdeen Standard Physical Precious Metals Basket Shares ETF (GLTR) invests in a number of precious metals. As of Dec. 31, 2021, the fund held 762 bars of gold, 579 bars of palladium, 305 bars of platinum, and 11,502 bars of silver. The metals are held at a secured vault in London. The fund has returned a little over 1% annually since its inception in October 2010. The annual expense ratio is 0.60%.6
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NYMEX also has thinly-traded palladium futures.

kmgilroy89 · Feb 24, 2022

I bought PALL yesterday, looking pretty good now. Thanks for the tip!

kmgilroy89 · Mar 10, 2022

Great call! Hopefully some Chinese hedge fund is massively short it like nickel.

maxinger · Mar 10, 2022

Nymex palladium futures - margin requirement $34k.

by comparison, the gold futures margin is $8k.

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What's the best way to get involved with Palladium investing?

kmgilroy89

ph1l

kmgilroy89

kmgilroy89

maxinger