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

Interested in China? Use our China ETFs Channel, library, and ETF screener.

Interested in oil? Use our oil ETFs channel, library and ETF screener!

ETF DAILY DATA

The investment-grade corporate bond ETF saw inflows as investors sought the safety of higher-quality bonds on Thursday, May 5.

BlackRock and SSgA saw net outflows from their ETFs, while Vanguard saw a modest net inflow on Thursday, May 5.

ETF.COM ANALYST BLOGS

By Dave Nadig

How NAV works differently between ETFs and mutual funds.

By Drew Voros

With the broad equity ideas all taken, issuers look for thinner slices of exposure.

By David Lichtblau

How funds wash away capital gains through create/redeem process.

By Dave Nadig

End investors are the big winners; brokers—not so much.

ETF INDUSTRY PERSPECTIVE

By Kristi Kuechler

Interest is growing in the gray area between passive and active.

By Adam Patti

ETFs are more tax efficient than mutual funds.

By Sprott Asset Management

New fund’s underlying index targets equities sentiment on social media.