“We remain positive the fundamentals of platinum and palladium and believe that prices will continue to perform strongly in 2014. Large deficits are already expected in both markets this year and the recent pick up in global auto sales is likely to exacerbate the situation further. With combined auto sales in the US, China and Europe, the three biggest regions by consumption, up 6% in the first five months of 2014 on the previous year, the PGM market is looking increasingly tight,” said ETF Securities.
An unexpected rise in U.S. car sales is also supporting platinum and palladium – the precious metals are used in car-exhaust filters to diminish pollutants, with automobile use accounting for 38% of total platinum demand and 68% of palladium demand.
ETFS Physical Palladium Shares
ETF Trends editorial team contributed to this post.