Platinum ETFs Could Stand to Catch Up to Palladium

ETF Trends reported yesterday that platinum could catch up to its sister metal, palladium, on the back of strong fundamentals and demand from emerging markets.

As quoted in the publication:

Although palladium futures have been buoyed by the aforementioned labor problems in South Africa, that impact has been far less palpable for platinum and PPLT, a vexing scenario considering that South Africa’s is the world’s largest platinum producer.

ETF Securities said in a research note:

The platinum to palladium ratio has dropped to its the lowest level since 2002, despite a South African strike that took over 1moz of platinum off the market. While the palladium price has been in a better position to benefit from a pick-up in China and US economic growth given its heavy use in the gasoline autocatalysts that dominate their auto markets, as the global recovery broadens to include Europe, we believe platinum (used heavily in diesel autocatalysts and Chinese jewelry) will start to see more demand traction.

Click here to read the full ETF Trends article.