Sprott Physical Platinum and Palladium-U Surges 4.14% as Bullion Accumulation Drives Investor Confidence

The share price of Sprott Physical Platinum and Palladium-U (SPPP) surged 2.18% on Monday, marking its second consecutive day of gains. Over the past two trading sessions, the stock has risen 4.14%, reaching its highest level since October 2025, with an intraday high of 2.69% on Monday. The rally reflects renewed investor confidence in the trust’s physical platinum and palladium holdings, which have seen significant appreciation in recent months.

SPPP’s performance is closely tied to its aggressive accumulation of bullion, with platinum and palladium reserves expanding by 64.8% and 43.4%, respectively, by mid-2025. This strategic buildup, funded through a $117.8 million capital raise via an at-the-market program, has amplified the trust’s exposure to price movements in the metals. The trust’s net asset value (NAV) per unit climbed 32.5% year-to-date, narrowing the discount to NAV to 1.1% as of June 2025, signaling strong alignment between market price and underlying asset value.

However, challenges persist. SPPP underperformed the platinum spot price by 17.4% in the first half of 2025, raising questions about operational efficiency and the relative performance of its palladium holdings. Operating expenses increased to $0.4 million in 2025, despite a slight improvement in the management expense ratio to 0.98%. Additionally, Canadian investors face tax reclassification risks, as gains from commodity transactions could be taxed as ordinary income, potentially dampening returns.

Market dynamics remain favorable. SPPP’s units trade on major exchanges with improved liquidity, and the trust’s fully allocated bullion holdings, stored securely by the Royal Canadian Mint, enhance transparency. The recent 111% asset growth underscores robust demand for tangible precious metals. Yet, structural factors such as supply constraints in South Africa and Russia, coupled with shifting industrial demand, could introduce volatility. Investors are advised to monitor macroeconomic trends and regulatory developments that may impact the platinum and palladium markets.