Episode summary
Harrison Schwartz: Why PPLT Is My Top Platinum ETF Pick Through 2030
ETF Spotlight
· · Guests: Harrison Schwartz
Summary
Harrison Schwartz argues that PPLT, the abrdn Physical Platinum Shares ETF, is attractive as a long-term diversifier because platinum offers low correlation, inflation-hedging potential, and some exposure to monetary-risk protection without being as crowded as gold. He says platinum can function as a “dollar devaluation hedge, like gold, but under the radar,” which may give investors more upside if demand broadens.
A big part of his case is supply. Schwartz says platinum is far scarcer than gold, concentrated mainly in South Africa and heavily influenced by Sibanye-Stillwater, which he says accounts for around a quarter of production. He argues that production cuts at Sibanye-Stillwater, along with trade and geographic concentration risk, are already tightening supply and could support a shortage even if industrial demand merely stabilizes.
On the demand side, Schwartz thinks the metal’s industrial usage will be steadier than explosive, with some pressure from EV adoption but support from medical, hydrogen fuel cell, and other technologies. He expects the bigger price driver to be investment demand tied to inflation fears, and he says PPLT could remain a core metal allocation for him through 2030, though he would keep the position relatively modest at about 5% to 15% of a portfolio.
Key takeaways
- Schwartz says platinum is a low-correlation asset that can hedge monetary risk while staying less crowded than gold.
- He argues South Africa and Sibanye-Stillwater create supply concentration, and production cuts could tighten the market further.
- Schwartz expects industrial demand to level off, but he sees investment demand as the main driver of future upside.
- He says the biggest risk to precious metals would be a stronger policy push that defends the U.S. dollar and lowers inflation.
- For portfolio sizing, Schwartz would keep platinum as his largest metal position but cap it around 5% to 15%.
Notable quotes
“Platinum, for me, is great because it has relatively low correlations, but it gives you exposure to hedges against monetary risk”
“So, I think that there's no reason to say, we need to go on one thing only”
“I think the market is realizing that there is a supply shortage in the short-term and probably the long-term”
“the cost of production of platinum is very close to its current price”
“The one thing I'd say is, the cost of production of platinum is very close to its current price”
How the episode opens
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Seeking Alpha is not a licensed securities dealer, broker, US investment adviser, or investment bank. Hey everyone. Welcome back to another episode of ETF Spotlight.
I'm Daniel Snyder from Seeking Alpha. Today, we are lucky enough to be talking to Harrison Schwartz. He is going to take us into the world of platinum and palladium and what his opinions are in the space right now.
Obviously, lots of focus on gold and silver and those commodities through the years, specifically more recently with a lot of worry out there. Maybe it's inflation, maybe it's debt, maybe it's government shutdown, whatever it might be, right? But platinum and palladium have been these silent lurkers over the years, and we're excited to jump into the conversation with him.
So, obviously, we're going to jump into an ETF. And today, that will be PPLT. That's abrdn’s Physical Platinum Shares ETF.
And, Harrison, I would love to hear the case of one, first, you've been writing on Seeking Alpha since 2018. How did you get into specifically these metals? So, I've always, for me, it's always been about how do we defend the portfolio?
How do we make a portfolio that's robust against any situation that – any all-weather.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- platinum etf
- pplt outlook through 2030
- metal supply dynamics
- industrial demand
- portfolio diversification
Companies and tickers mentioned
- Platinum P2P Trust
Watch the episode
Watch “Harrison Schwartz: Why PPLT Is My Top Platinum ETF Pick Through 2030” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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