Platinum, Palladium Stocks Soar As ETFs Near

By
January 06, 2010
Share:

 

Platinum and palladium stocks are spiking as investors anticipate the launch of platinum and palladium bullion exchange-traded funds in the coming week.

Shares of platinum miner Stillwater Mining Company (NYSE: SWC) and palladium miner North American Palladium (AMEX: PAL) were up 14 percent and 8 percent respectively, midday, and trading at 52-week highs.

According to Reuters, the Securities and Exchange Commission approved a rule change in late December that would allow ETF Securities to proceed with the planned launch of ETFs that hold physical platinum and palladium bullion as their sole investment. Susquehanna, a well-known specialist firm, is said to have “seeded” the funds with an initial investment. Taken together, these two factors mean the new funds could launch within the week.

That has investors jockeying for position in related mining equities, betting that bullion-buying by the new ETFs will help drive up the prices of the underlying metals and support those shares.

The ETFS Platinum Trust is expected to list on the NYSE Arca under the ticker symbol PPLT. The ETFS Palladium Trust is expected to list on the NYSE Arca under the ticker symbol PALL.

The prospectus for PPLT is available here. The prospectus for PALL is available here.

 

ETF.COM CHANNELS

Trying to figure out alternatives ETFs? Use our alternatives ETFs channel, library and ETF screener!

Want to learn more about smart-beta ETFs? Check out our smart-beta guide, essentials library and ETF screener!

ETF DAILY DATA

The broad-market 'SPY' and energy ETF 'XLE' were the biggest winners in terms of inflows on Thursday, Aug. 27.

The top three ETF issuers all saw net inflows into their products as the market surged on Thursday, Aug. 27.

ETF.COM ANALYST BLOGS

By Dave Nadig

With many ETFs currently trading well off fair value, what’s an ETF investor to do? Don’t panic.

By Matt Hougan

Out-of-favor funds can bring attractive returns.

By Matt Hougan

New data from Charles Schwab show that the death of mutual funds is happening faster than we thought.

By Dave Nadig

Grab the popcorn. Precidian just doubled-down on its nontransparent active ETF proposal with the SEC this morning.

ETF INDUSTRY PERSPECTIVE

By John Del Vecchio

An index that goes long financially sound companies and shorts the ones with problematic balance sheets.

By Dan Draper

The nature of retirement is changing. How can investors adapt?

By Invesco PowerShares

A more in-depth look at the smart-beta survey's results.