The only palladium ETF, the ETFS Physical Palladium Shares (NYSE:PALL), absolutely destroyed gold and silver in terms of performance in November.
The outperformance of palladium — which surged 24% last month versus major losses in the yellow and silver metals — almost calls into question the traditional balance of the precious metals markets themselves. Just take a look at chart below, which compares PALL to the two most popular gold (GLD) and silver (SLV) ETFs (courtesy of Google Finance):
What’s behind palladium’s surge? ETF Trends has a few ideas:
Palladium has been rallying over recent months due to improving car sales and signs of strength in the U.S. economy.
Earlier this year, palladium also found support from the ongoing surge in the precious metals group, led by gold, as global central banks cut interest rates and implemented more aggressive accommodative measures to stimulate growth – low borrowing costs help support precious metals since the hard assets don’t offer yields while depressing the U.S. dollar, in which the metals are priced.
Other factors pushing palladium higher while gold and silver languish include rising investor sentiment, better auto sales, and lower metal inventories. Some analysts believe that palladium is hands down the best metal to own for 2017, and it’s hard to disagree given its recent outperformance.
PALL shares were pulling back a bit on Thursday morning, down $1.76 (-2.39%) to $72.00, but have still gained nearly 33% year-to-date, versus a 19% and 10% rise in SLV and GLD, respectively.