Palladium ETFs Over Platinum On South Africa Supply Concerns

ETF Trends reported palladium ETFs are more favorable to platinum ETFs in the medium to long-term on supply concerns over unrest in South Africa.

As quoted in the market news:

The unpredictability of the labor market in South Africa is also having a negative impact on platinum and palladium producers’ margins pushing producers to place their operations on care and maintenance as uneconomical. On-going concerns in Europe have depressed auto sales in this area, weighing on platinum prices in particular.

Although in the medium to longer term we remain in favor of the fundamentals of palladium over platinum, short-term prospects appear to be favoring platinum because of labor-driven supply disruptions.

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