PPLT ETF

Platinum's current supply deficit is substantial and growing on it's 3rd consecutive year with net negative movement in above-ground physical platinum supplies. While Platinum behaves like an industrial metal more than a precious metal, even compared to other industrial metals it remains undervalued. With Limited downside risk with significant upside potential, platinum's relative undervaluation compared to other metals makes it a speculative buy and an excellent place to park cash.

Platinum has lagged behind gold in terms of price performance, as gold reached a new high in 2024 while platinum did not. Despite geopolitical events like the conflict in Ukraine and sanctions on Russia, platinum's price has not been impacted. The less liquid platinum futures market compared to gold and silver could result in higher price volatility when platinum eventually breaks out of its current consolidation phase.

abrdn Physical Platinum Shares ETF is a popular way for investors to buy platinum, which is currently undervalued compared to gold. Platinum has historically traded at a premium to gold, but the price relationship has inverted, presenting a potential buying opportunity. Platinum has various industrial uses and could see increased demand in the future with the rise of hydrogen fuel cell-powered vehicles.

Platinum is a unique precious metal with diverse applications, including in the automotive industry and emerging hydrogen fuel cell technology. abrdn Physical Platinum Shares ETF offers a cost-effective and convenient way to invest in physical platinum. The PPLT ETF stands out among other platinum funds due to its liquidity, higher assets under management, and daily trading volume.

Platinum remains a weak link in the precious metals sector, but its supply-demand deficit and rising demand make it an attractive investment. The platinum-gold spread is at a record low, indicating platinum's underperformance compared to gold. Despite a growing platinum deficit, investors have ignored the supply-demand imbalance, keeping platinum prices low.

Platinum prices have declined by 8% in 10 months, making it appear to be a bargain compared to other precious metals. The platinum market is experiencing a deficit in supply, but economic concerns and rising interest rates have prevented a significant rally. The geopolitical landscape, particularly the ongoing war in Ukraine, threatens the supply of platinum from BRICS countries, which dominate worldwide production.

PPLT is a convenient tool to match the dynamics of platinum without physically holding the precious metal. The dynamic of platinum prices has reflected China's economic recovery since the beginning of the year. I recommend a Hold action of PPLT's shares, due to mixed expectations of China's recovery and other risk considerations mentioned in the article.