Megaphone icon ETF Database is now VettaFi. Read More >
ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Gold & Silver Investing Channel
  2. Palladium and Platinum Present Chaos, Opportunity
Gold & Silver Investing Channel
Share

Palladium and Platinum Present Chaos, Opportunity

Evan HarpMay 23, 2022
2022-05-23

Palladium and platinum are at a crossroads as the situation in Russia has led to an unusual dislocation between the two main palladium markets.

This price dislocation is not unlike the 2020 precious metals market chaos from when the start of the pandemic grounded flights and forced a number of shutdowns. This had bullion banks concerned that they wouldn’t be able to ship metals from London to the U.S., creating price dislocation between the two markets.

Russia accounts for roughly 25%-30% of the global palladium supply. Though Russian palladium hasn’t been sanctioned and only new ingots are facing restriction, traders are worried that Russian-branded bars will be hard to move. “Self-sanctioning” has started playing out across the commodity markets as individual companies create their own stances that may go beyond what is required by a government when it comes to policy around Russia. Traders are concerned that buyers and manufacturers will be wary of anything from Russia. Futures prices have already been affected, as the U.K. has started issuing steep import tariffs on Russian palladium.

Palladium and platinum are instrumental for automakers. They are critical components in catalytic converters in gasoline-powered cars, and platinum is also used in fuel cells for electric vehicles. At roughly $950 per ounce, platinum is much more affordable than palladium. “The substitution effort has gone up hugely,” said Trevor Raymond, the WPIC’s head of research. “The amount of savings an automaker can make are massive. What’s been added on top of that is concerns about availability (of palladium).”

Throughout the first quarter, platinum demand plunged 26%. As companies start substituting platinum for palladium, demand should increase, creating a unique buying opportunity. The Sprott Physical Platinum and Palladium Trust (SPPP) holds physical platinum and palladium, and is worth keeping an eye on amid the ongoing war in Ukraine and the global clean energy pivot.

For more news, information, and strategy, visit the Gold & Silver Investing Channel.

Loading Articles...
Help & Info
  • Contact Us
  • Mission Statement
  • Press
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X