Pt and Pd ETF competition for goldper Globe and Mail today. Pertinent commentary:
The metals are being underpinned by fresh investment interest after the launch of new platinum- and palladium-based exchange-traded funds in New York last Friday. The ETFs added 170,000 ounces of metal in their first two trading sessions.
Interest in platinum group metals-backed ETFs could detract attention from similar products backed by gold, like the SPDR fund, Goldman Sachs said in a research note.
“The gold ETFs may face increased competition for investor demand in 2010 from the introduction of both the platinum (PPLT) and palladium (PALL) PGM ETFs,” the bank said.
“While these new physical-backed ETFs present a downside risk to gold-ETF demand and gold prices, they represent an upside risk to platinum prices, and we continue to recommend a long position in platinum as a ‘gold-plus' trade,” it added.