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.”

    Share Story:

Recent Stories


Podcast: The benefits of private equity in pension fund portfolios
The outbreak of the Covid-19 pandemic, in which stock markets have seen increased volatility, combined with global low interest rates has led to alternative asset classes rising in popularity. Private equity is one of the top runners in this category, and for good reason.

In this podcast, Munich Private Equity Partners Managing Director, Christopher Bär, chats to European Pensions Editor, Natalie Tuck, about the benefits private equity investments can bring to pension fund portfolios and the best approach to take.

Podcast - The power of three: Using Common Contractual Funds to improve tax outcomes for investors
Large asset owners are still investing in equities in a way where they are taxed on their income. The implication is that they get a poorer return. They need to, and can, improve this, but how?

In this podcast, AMX Head of Client and Manager Development, Aaron Overy, and AMX Product Tax Specialist, Kevin Duggan, discuss with European Pensions Editor, Natalie Tuck, about three options to help ensure good withholding tax outcomes for institutional investors.
Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows

Europe’s pensions challenges
Francesca Fabrizi meets Matti Leppälä, Secretary General and CEO of PensionsEurope, to discuss the key aims and objectives of the association today.