How ETFs Help and Harm Precious Metals Miners

CNBC reported on the success of precious metals ETFs discussing how they hurt and help miners in the palladium, platinum and gold industry.

As quoted in the market news:

On the other hand, one reason why bullion ETFs have gotten so popular is that many investors don’t want to count on company management to make smart decisions. For instance, investors who are interested in palladium essentially have two choices on U.S. exchanges: Stillwater Mining and North American Palladium. Yet Stillwater took a huge hit last year when it announced it was diversifying its operations by buying a gold and copper mine — effectively destroying the basis under which many investors bought shares in the first place. Similarly, North American Palladium had to close its primary Lac des Iles palladium mine in late 2008 as palladium prices sank from nearly $600 per ounce earlier in the year to less than $200 during the worst of the financial crisis. The mine stayed closed for nearly a year and a half before prices rose enough to reopen it.

Click here to read the full CNBC report.