Sprott to launch $115 million platinum and palladium ETF

Sprott Inc is all set to launch a new physically backed ETF fund that invests in Platinum and Palladium and worth $115 million, the company’s latest filing shows. Sprott Inc, founded by Eric Sprott, has seen huge success with its PSLV Silver trust ETF.

As per the preliminary prospectus submitted by the company, the fund will aim at long-term investment rather than short-term speculation. Sprottt Inc plans to launch 11.5 million shares of $10 each in its initial phase. Investors can buy them at the NYSE Arca and the Toronto Stock Exchange under the symbols “SPPP” and “PPT.U” respectively.

Unlike certain other ETF’s, Sprott’s fund provides the investor with the ability to redeem the physical metal. With the proposed ETF, investors will reportedly be allowed to withdraw 25,000 units monthly.

Sprott, PSLV Silver ETF has seen some massive buying that has influence global markets. In 2010, the company purcahsed around $500 million of physical silver after which prices rallied. And more recently, the company is preparing to implement a $1.5 billion purchase of silver.

It remains to be seen if the Platinum and Palladium ETF’s will have the same effect on prices. And even though the proposed purchase may not cause a price rally due to its small size, its successful issue could provide a base for larger purchases in the future and that could easily influence markets. – CommodityOnline

Tags: platinum, Platinum ETF, platinum futures, platinum futures prices, platinum price, platinum prices

Posted by admin on Jan 16 2012. Filed under Gold ETFs, Palladium, Platinum. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry