85% of pension funds expect price of precious and industrial metals to increase

Eighty-five per cent of European pension funds expect the price of precious and industrials to increase over the next 12 months, according to research by NTree International Ltd.

The survey of 150 European pension funds across the UK, Germany and Italy, representing USD 213bn in assets under management, was carried out in April 2021. NTree represents Global Palladium Fund’s range of metals ETCs.

The positive outlook comes 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.

Commenting, NTree head of research, Hamad Ebrahim, said: “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.”

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