Gold has long been the standard bearer for investors looking to diversify their portfolios, hedge against inflation or access a safe haven in times of trouble. However, it often overshadows other precious metals, including silver, platinum and palladium, that offer similar benefits at differing prices.
Like gold, these metals have low or negative correlations with the stock and bond markets, reducing risk and protecting against volatility. Industrial use in the manufacture of solar panels and within the auto industry is increasing demand for these metals.
Exchange-traded funds (ETFs) and exchange-traded products (ETPs) offer an alternative for those seeking exposure to precious metals. While investing in physical metals has benefits, it also has its share of challenges, including reduced liquidity, storage concerns and premiums from sellers.
In addition to the precious metals ETFs listed on the ASX below, there are seven options for investors looking to invest in gold ETFs, which you can read about in depth in our article here.
Here’s a look at four precious metals ETPs on the ASX that offer exposure to silver, platinum and palladium. The ETPs are listed by assets under management, and data was retrieved from the company's website on November 25, 2024. Read on to learn more about them and whether they could be a fit for your portfolio.
1. Global X Physical Silver (ASX:ETPMAG)
Total assets under management: AU$400.43 million
Unit price: AU$44
This ASX-listed silver ETP offers investors access to the silver price, which has performed strongly in 2024. It is backed by physical silver held by JP Morgan Chase Bank in London. Adding silver to your portfolio can help diversify it during times of volatility, and its industrial demand is rising due to its role in clean energy technologies.
Global X Physical Silver has logged a 13.14 percent return over the past five years, and has a management fee of 0.49 percent.
2. Global X Physical Precious Metals Basket (ASX:ETPMPM)
Total assets under management: AU$60.01 million
Unit price: AU$252
For investors looking for a precious metals ETF, the Global X Physical Precious Metals Basket provides broad exposure to a range of precious metals. The ETP's physical holdings consist of gold, silver, platinum and palladium, which are held by JPMorgan in London.
Over the past five years, this fund has a 7.76 percent return. The ETP has a management fee of 0.44 percent.
3. Global X Physical Platinum (ASX:ETPMPT)
Total assets under management: AU$21.75 million
Unit price: AU$137.31
Global X Physical Platinum provides access to platinum held in JP Morgan storage facilities. Due to its value as a precious metal and industrial demand, platinum offers investors an opportunity to diversify portfolios.
Over the past five years, this platinum ETP has seen a 1.75 percent return. It has a management fee of 0.49 percent.
4. Global X Physical Palladium (ASX:ETPMPD)
Total assets under management: AU$10.76 million
Unit price: AU$142.52
Global X Physical Palladium offers investors a secure option to purchase holdings in the precious metal backed by a physical product. Palladium gives investors the benefits of a precious metal with the additional upside of industrial demand from its use in the automotive sector.
Like its companion fund, Global X Physical Platinum, this palladium ETP's management fee is 0.49 percent. While the fund's return is negative 10 percent over the last five years, the price of palladium metal over the same time period is down over 40 percent. Since its inception, this fund has had a return of 11.38 percent.
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Securities Disclosure: I, Dean Belder, currently hold no direct investment interest in any company mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
