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Most investors love to talk about their winners. That's understandable, but it's still a shame, because losing investments can often teach us a lot more.
Sprott Physical Platinum and Palladium Trust, which offers exposure to physical platinum and palladium, has underperformed a diversified precious metal pack by over 3x in H1-26. Despite concerns around bearish momentum and SPPP's lack of yield, I am prepared to turn cautiously optimistic. HEV (hybrid electric vehicle) sales volumes are on the up and support future PGM demand, as these vehicles require higher platinum and palladium loadings for catalytic converters.
The Sprott Physical Platinum and Palladium Trust offers direct PGM exposure but faces high management fees and geopolitical-driven price volatility. I prefer exposure through miners like Valterra, which offer operational value-add, dividends, and compounding potential versus SPPP's static physical holdings. PGM demand is heavily tied to catalytic converters; market surplus risk looms as EV adoption and geopolitical effects on rates and leveraged overall car purchases persist.
Key Takeaways While energy investments of all kinds have struggled amid conflict in the Middle East, uranium might offer a compelling long-term opportunity. Sprott Asset Management CEO John Ciampaglia noted that uranium's fundamentals remain sound, and that it remains far harder to substitute or replace than other metals investors tend to allocate towards.
Silver is entering its sixth consecutive year of a structural supply deficit, as global production fails to keep pace with the massive demand required for the clean energy transition and AI infrastructure.
Despite falling below $5,000 recently, it could be an opportune time to strike and purchase the dip in gold prices. Fundamental demand drivers could continue to push the precious metal higher through the rest of the year.
Sprott Physical Platinum and Palladium Trust offers direct exposure to physical platinum and palladium, tracking their price movements effectively. Platinum and palladium rallied sharply from April 2025 lows, then corrected over 20%, presenting a potential accumulation opportunity at current levels. Both metals remain rare, with annual mine supply under 200 metric tons, and are supported by high gold and silver prices and concentrated production.
Neils Christensen has a diploma in journalism from Lethbridge College and has more than a decade of reporting experience working for news organizations throughout Canada. His experiences include covering territorial and federal politics in Nunavut, Canada.
SEC filings for SPPP aren't indexed yet — common for recently launched funds. Browse the issuer's filings on SEC EDGAR directly.