U.S. Palladium Fund Breaks Above $500M
Source: Reuters, Amanda Cooper (10/18/10)
"Investors are looking to diversify their precious metals portfolios."
The fund saw outstanding shares rise to a record 8.45 million shares last week, indicating investor appetite for palladium, which is primarily used in catalytic converters to cut vehicle emissions.
"The interest in both PALL and its sister product, PPLT (Platinum) may indicate investors are looking to diversify their portfolios to hold more precious metals than just gold," said William Rhind, strategic director for ETFS Marketing LLC, in a press statement.
Spot palladium has risen by more than 40% so far this year to around $580 an ounce, making it one of the top performing commodities of 2010, driven largely by demand for catalytic converters in gasoline-intensive car markets such as China.
Investment in platinum group metals soared this year with the launch of the U.S.-listed palladium and platinum ETPs.