Palladium investments: ETFs

1. Palladium investments: ETFs

Palladium-backed exchange-traded funds (ETFs) track palladium like an index fund, but trade like stocks on an exchange. Examples of palladium ETFs include the Sprott Physical Platinum and Palladium Trust (ARCA:SPPP) and the Aberdeen Standard Physical Palladium Shares (ARCA:PALL).

The Sprott Physical Platinum and Palladium Trust was created to invest and hold substantially all of its assets in physical palladium and platinum bullion. The trust [currently holds](
-trusts/platinum-and-palladium/net-asset-value-premium-discount/) 53,002 ounces of palladium and 24,090 ounces of platinum. The portfolio is held in custody at a federal crown corporation of the Canadian government.

The Aberdeen Standard Physical Palladium Shares is designed to track the performance of the palladium price, less expenses. It holds over 130,000 ounces of palladium in London at a secured vault belonging to JPMorgan Chase & Co. (NYSE:JPM).


A risk, if you think the car industry will move away from ICE to electric:
“…catalytic converters, which help remove the pollution from combustion engines, use more than 70 percent of global palladium…”

I think most of that is used in big diesels. I think we are a long way from replacing big diesel engines with electric yet

Another use for Palladium is safe hydrogen storage, if you think there’s any future in using Hydrogen as energy storage it might be worth a play there as well

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There does seem to be a high price for palladium as recently there was a report in the news of people’s hybrid cars having their catalytic converters being stolen. This is cause the palladium in them is more pure than those found in full combustion engines that degrade the metal over time/use.

I think palladium and other rare earth minerals/metals are something that should be an option to have stocks in as they are all used widely in a lot of consumer electronics. I’d be up for buying into them if they were available on FT.