Gasoline cars utilize palladium-made catalytic converters to diminish toxic gases from exhaust emissions.
According to Morgan Stanley, demand will outstrip supply for a third year in 2014.
“We already have significant problems with production because of the labor strike in South Africa,” Bart Melek, the head of commodity strategy at TD Securities, said in the article. Sanctions could limit the availability of financing for Russian producers, “impeding the flow of the metals from Russia.”
ETFS Physical Palladium Shares
For more information on palladium, visit our palladium category.
Max Chen contributed to this article.