Pension funds expect price of precious and industrial metals to increase, says new study

New research with 150 European pension funds with a combined AUM of USD213 billion, reveals that the price of precious and industrial metals is expected to increase.

The study was carried out by NTree International Ltd, a specialist marketing and distribution, and investor education firm. NTree represents Global Palladium Fund’s range of metals ETCs.

The findings show that 85 per cent of pension funds expect the price of gold to increase over the next 12 months as jewellery consumption rebounds fully in line with the global economic recovery. Two thirds of pension investors also expect the price of platinum to increase and 60 per cent expect the price of silver to increase for the same reason.

Pension funds are also optimistic about industrial metals, with 77 per cent expecting an increase in the demand and price of palladium, nickel and copper over the next two years.  This will be driven by major economies led by China which are expected to see strong growth in 2021 and 2022 and major increases in industrial production.

Hamad Ebrahim, Head of Research at NTree, comments: “Our research highlights the post pandemic economic recovery is having a positive impact on precious and industrial metal performance.  Metals are particularly appealing to pension funds looking to diversify their portfolios and as a hedge against inflation.   Furthermore, metals such as palladium, copper and nickel are vital for the transition to a sustainable and greener economy, further increasing their appeal.”

NTree represents Global Palladium Fund (GPF) which has four metal ETCs (gold, silver, palladium and platinum) listed on the Deutsche Börse and London Stock Exchange.  They have the lowest charges with total expense ratios (TER) ranging from 0.145 per cent to 0.20 per cent.

Targeting Family Offices, wealth managers, institutional and other professional investors, the new physically-backed gold, silver, platinum and palladium ETCs will track the spot price of the respective metals they cover. 

In an industry first, the ETCs use Blockchain technology to record bar information and provides an extra layer of security and transparency.

NTree has set up a dedicated brand, Metal.Digital as an education resource for professional investors with a focus on metals.