Platinum, Palladium Set to Skyrocket

Good article this morning on the demand for Palladium and global supply, via Seeking Alpha. A lot of the investment bankers writing for SA have monetary interests in their topics, but Mr. Roseman has no disclosures here so we can take it as a fairly untainted outlook on the metals market.

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By Eric Roseman

No other precious metal has a tighter supply than platinum.

Though platinum prices have remained high over the last few years, supplies are getting thinner by the day as South African production draws to a standstill. Lately, these tight supplies have helped platinum prices shoot up north of US$2,000.

In fact, platinum has climbed so high that its sister metal, palladium is becoming the new exciting speculation. Right now, palladium is sitting at 56% off its all-time high in 2001 of US$1,100 an ounce. The platinum-to-palladium differential hit its widest level in history in late May as platinum prices rocketed to new highs.

So the question is: Has the price of platinum climbed so high that industries will start switching to palladium?

......Read the full article