SP SPPP Sprott Physical Platinum and Palladium Trust Loading... : Investor Sentiment and Bull/Bear Views

He sees institutional demand for PGMs and says big money managers and RIAs are starting to discuss 10% allocations to the group. Because only a handful of firms can implement institutional PGM exposure, and institutions and retail investors appear under-allocated or short, he thinks there is more upside and that the move is still very early.

PGMs, especially platinum, remain attractive because the market narrative of rapid EV adoption and the end of combustion engines is diverging from reality. Combustion and hybrid vehicles still need PGMs, hybrids can require even more, regulation is tightening, and there is no substitute in catalytic converters. Supply is concentrated in South Africa and Russia, mining is deep and high-cost, the market has run multi-year deficits, recycling has been delayed, and new uses such as hydrogen fuel cells plus Chinese platinum jewelry demand add support. He is no longer adding and says the easy money has been made, but he is not selling and still sees room for platinum to rise; higher prices now justify more production, but a significant supply response is unlikely because producers need long-term contracts and heavy investment.