COM­MODI­TIES STILL NOT FOR ME

Finweek English Edition - - SIMON SAYS -

We’ve seen the t wo plat­inum ex­change-traded funds (ETFs) from Absa and Stan­dard Bank, as well as the Stan­dard Bank pal­la­dium ETF, all is­su­ing new units at a rapid rate over the past few weeks. In other words, peo­ple are buy­ing as the com­mod­ity price is fall­ing. I have ex­ited my plat­inum ETF and can’t see the at­trac­tion here, although the rand is sav­ing things to a de­gree – the cur­rency’s weak­ness is help­ing to hold up the ETFs while the un­der­ly­ing me­tal price is fall­ing. I still be­lieve things will re­main very tough in this space and can’t see any se­ri­ous trig­ger that would push the me­tal prices higher any time soon.

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