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Bullish on Precious Metals? 3 Lesser-Known ETFs to Buy Now

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Bullish on Precious Metals? 3 Lesser-Known ETFs to Buy Now
© Reuters. Bullish on Precious Metals? 3 Lesser-Known ETFs to Buy Now

 

Together with rising demand from reopening industries, the growing demand from investors seeking to hedge their portfolios against inflation risk is driving up prices for precious metals such as palladium, platinum and gold. Consequently, lesser-known precious metal ETFs Aberdeen Standard Physical Platinum Shares (PPLT), Aberdeen Standard Physical Palladium Shares (PALL), and Sprott Junior Gold Miners (SGDJ) are expected to deliver significant returns in the coming months. Interested in this? Then read on.Rising inflation is spurring strong demand for precious metals as investors rush to hedge at least a portion of their portfolios against a potential stock market correction. Furthermore, rising industrial and manufacturing activities amid the fast-paced macroeconomic recovery has been generating additional demand for precious metals. This trend is likely to continue because the Fed has said it expects inflation rates to rise further.

 

The global precious metals market is expected to grow at a 5.6% CAGR over the next six years.

 

While futures and option contracts are commonly used to trade precious metals, the higher risks and added expenses of such contracts make ETFs a viable alternative. We think lesser known precious metal ETFs Aberdeen Standard Physical Platinum Shares ETF (PPLT), Aberdeen Standard Physical Palladium Shares ETF (PALL), and Sprott Junior Gold Miners ETF (NYSE:GDX) (SGDJ) are well positioned to deliver solid returns in the coming months.

 

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