The palladium exchange traded fund continues to see strong interest as investors try to capitalize on the largest supply deficit in over a decade.

ETFS Physical Palladium Shares (NYSEArca: PALL) is up more than 10% the past three months to within shouting distance of its 52-week high from early 2012.

Last month, Johnson Matthey calculated that palladium will hit its worst deficit in 11 years. [Palladium ETF Bolstered on Largest Shortage in a Decade]

“Funds have been after palladium ever since that JM report came out,” Frank McGhee, head precious metals at Integrated Broking Services in Chicago, said in a Reuters article.

Palladium futures were trading around $709 an ounce on Wednesday.

Palladium is used in automobiles for autocatalysts to convert emissions into less harmful substances.

On the demand side, Scotiabank expects global auto sales to rise 4% in 2013 after average growth rates of 7% over the past three years, according to The StarPhoenix.

Showing Page 1 of 2