More Gains Could be in Store for PALL

ETF Trends reported that the ETFS Physical Palladium Shares (ARCA:PALL), the only US-listed palladium-only ETF, is up almost 6 percent year to date and could be set to gain further.

As quoted in the market news:

More gains could be on the way. Greater demand for automotive vehicles could help boost palladium prices. Palladium is used to manufacture autocatalysts found in gasoline vehicles. The device helps convert toxic particles in the exhaust of an internal combustion engine to less toxic byproducts. The world’s two largest auto markets, China and the U.S., use palladium in the production of catalytic converters.

The medium- to long-term supply/demand forecast is also favorable. Demand will exceed output by 1.33 million ounces in 2013, more than North America produces in a year, Joe Richter and Debarati Roy reported for Bloomberg, citing Morgan Stanley. Credit Suisse anticipates deficits through at least 2016, and researcher CPM Group says mines won’t catch up for a decade, according to Bloomberg.

Click here to read the full ETF Trends report.