Platinum ETF (PPLT) Hit a 52-Week High
Investors seeking momentum may abrdn Physical Platinum Shares ETF PPLT on radar now. The fund recently hit a new 52-week high. Shares of PPLT are up approximately 154.9% from their 52-week low of $82.35/share.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
PPLT in Focus
The LBMA Platinum Price PM refers to the official afternoon price for platinum set by the London Bullion Market Association. PPLT charges 60 basis points in fee per year (see all Precious Metals ETFs here).
Why the move?
Platinum prices have been rising lately, driven by supply shortages. Meanwhile, demand remains decent from autos and jewelry as well as investments. The use catalytic converters in the auto sector is one of the main applications for platinum and palladium.
Now, electric vehicles (EVs) do not use catalytic converters. With the Trump administration not favoring EVs, the need and demand for catalytic converters should rise, which in turn is favoring platinum and palladium prices.
In a nutshell, as the green energy transition advances and demand for clean, low-emission technologies rises, the demand for platinum is rising. Plus, all precious metals prices are rising lately due to the higher safe-haven demand amid economic and policy uncertainty.
More Gains Ahead?
PPLT ETF has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. However, the fund has a weighted alpha of 87.22. So, the fund can surge a bit higher if the operating environment remains favorable.
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abrdn Physical Platinum Shares ETF (PPLT): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
