Commodities & Metals

Physical Platinum & Palladium ETFs Launch (PPLT, PALL, GLD, SGOL, SIVR, SWC, PAL, PTM, PGM)

Your wait for the platinum and palladium ETF products is over.  Today marked the launch of the ETFS Physical Platinum Shares (NYSE: PPLT) and ETFS Physical Palladium Shares (NYSE: PALL).  These ETFs are similar to the SPDR Gold Shares (NYSE: GLD) in that they are backed by physical assets in plate and ingot form in a secure London Platinum Palladium Market-approved vault.

ETFS noted that the Platinum and Palladium plates and ingots are stored on behalf of each trust, and will undergo a bi-annual audit performed by an independent external bullion specialist auditor with results to be published.  Both the platinum and palladium ETFs have an expense ratio of 0.60% per year.

This will give ETF Securities a broader metals lineup after its ETFS Physical Swiss Gold Shares (NYSE: SGOL) and ETFS Physical Silver Shares (NYSE: SIVR) ended with combined assets under management of $492 million (US dollars) as of the end of the year.

We noted earlier in the week how these ETF launches were creating underlying moves in two key stocks: Stillwater Mining Co. (NYSE: SWC) and North American Palladium Ltd. (NYSE: PAL).

  • The first, Stillwater Mining (SWC) is up another 5.5% at $12.42  after it hit a new 52-week high today of $12.65.  This one was at $9.48 on December 31 and $8.89 on December 24.
  • The second, North American Palladium (PAL) has seen its shares get within a penny of the $4.20 high today and shares are now selling off on the news and down at $4.01 on 1.3 million shares.  That was a $3.50 stock on December 31 and was at $2.96 on December 24.

As far as other competing ETF (actually ETN) products, there are the UBS E-TRACS Long Platinum Trust ETN (NYSE: PTM) and iPath DJ AIG Platinum Tust Sub-Index ETN (NYSE: PGM).

At 11:41 AM EST we have seen just over 48,000 shares trade in PPLT and the last trade was at $157.64 (versus approximately $1.559.00 for platinum according to Kitco.com) and PALL has traded just over 85,000 shares with a last price of $43.43 (versus a palladium price of $423.00 according to Kitco.com).

JON C. OGG

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