Investing In Platinum And Palladium After The Correction With The SPPP ETF Product

Platinum and palladium have recently demonstrated strong upside potential, marked by technical breakouts and bullish key reversals, following years of underperformance. Their rarity, concentrated supply in Russia and South Africa, and low market liquidity are poised to amplify future price movements, while ongoing gold and silver bull trends provide further support. Despite past volatility, with palladium previously reaching $3,425/oz, both metals are considered undervalued relative to their all-time highs, presenting a timely value opportunity for institutional investors, potentially via vehicles like the SPPP ETF.

Analysis

Platinum and palladium have signaled a significant technical shift, executing bullish key reversals in Q2 2025 after a prolonged period of underperformance. The bullish thesis is underpinned by fundamental factors, including a highly concentrated supply chain dominated by Russia and South Africa, and characteristically low market liquidity that could amplify upward price movements. This technical breakout occurs within a supportive macro environment of ongoing bull trends in gold and silver, positioning the platinum group metals as a potential catch-up trade, given they remain significantly undervalued relative to their historical peaks. The dramatic prior decline, which saw palladium fall from over $3,300 per ounce in 2022 to below $1,000, frames the current environment as a potential value opportunity after a significant correction, with ETFs like the Sprott Physical Platinum and Palladium Trust (SPPP) providing a direct way to gain exposure to the physical assets.

Key Decisions for Investors

• Investors with a bullish outlook on commodities could consider initiating long positions in platinum and palladium to capitalize on the recent technical breakouts and relative undervaluation against gold and silver.
• For direct exposure, utilizing physically-backed exchange-traded funds such as the Sprott Physical Platinum and Palladium Trust (SPPP) is presented as a viable strategy, potentially offering a favorable entry point after its recent price correction.
• Given the low liquidity and concentrated geopolitical supply sources, investors should be prepared for heightened volatility and manage risk accordingly, as these factors can amplify price swings.
• Monitor the price ratios of platinum and palladium against gold as a key indicator for the sustainability of this potential catch-up trade and the strength of the nascent trend.