Palladium Commodity

Palladium commodity ETFs and mutual funds invest the majority of their assets... Palladium commodity ETFs and mutual funds invest the majority of their assets in physical palladium or palladium futures contracts. These funds aim to provide exposure to investors who believe the price of palladium is heading higher. Palladium commodity ETFs and mutual funds tend to be passively managed. The most common type of palladium commodity fund invests in the physical metal itself. These funds store metal in secure vaults on behalf of investors. Some palladium commodity funds only own palladium futures contracts. These are derivatives that are tied to the price of palladium. Palladium futures usually move in lockstep with the price of physical palladium, but there can be times when it’s more profitable to own futures than physical, and vice versa. Investors are attracted to palladium because it’s considered a precious metal and may act as an inflation hedge. The metal is also tied to economic growth, as the largest single use for palladium (nearly 85% of demand) is in catalytic converters in automobiles. It is important to note that the palladium market is very small compared to gold, and can be very volatile. Investor purchases and sales of palladium can therefore have a large impact on the price. Palladium commodity ETFs and mutual funds are only appropriate for investors willing to take on considerable risk. Last Updated: 04/18/2024 View more View less

Palladium commodity ETFs and mutual funds invest the majority of their assets in physical palladium or palladium futures contracts. These funds aim to provide exposure to investors who believe the price of palladium... Palladium commodity ETFs and mutual funds invest the majority of their assets in physical palladium or palladium futures contracts. These funds aim to provide exposure to investors who believe the price of palladium is heading higher. Palladium commodity ETFs and mutual funds tend to be passively managed. The most common type of palladium commodity fund invests in the physical metal itself. These funds store metal in secure vaults on behalf of investors. Some palladium commodity funds only own palladium futures contracts. These are derivatives that are tied to the price of palladium. Palladium futures usually move in lockstep with the price of physical palladium, but there can be times when it’s more profitable to own futures than physical, and vice versa. Investors are attracted to palladium because it’s considered a precious metal and may act as an inflation hedge. The metal is also tied to economic growth, as the largest single use for palladium (nearly 85% of demand) is in catalytic converters in automobiles. It is important to note that the palladium market is very small compared to gold, and can be very volatile. Investor purchases and sales of palladium can therefore have a large impact on the price. Palladium commodity ETFs and mutual funds are only appropriate for investors willing to take on considerable risk. Last Updated: 04/18/2024 View more View less