SOMETHING TO KEEP IN MIND
The two palladium ETFs (NGPLD and ETFPLD) have been a roaring success. Both have a market cap of around R3.7bn and represent some 420 000 ounces of palladium each. Global mined palladium production is around 6m-7m ounces per year, mean- ing that these two ETFs have taken more than 10% of a single year’s production out of the market. In a sense this helps demand and hence moving prices higher. This is all well and good, and certainly the platinum and gold ETFs did pretty much the same, albeit on different scales. But they also add to price risk when the selling starts. It is not likely to happen anytime soon, but always remember that what can boost a price can just as well dent it in time.