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ETF Trends reported that the low price of gas and cheap bank loans may attract more automobile buyers in 2015. As a result, the ETFS Physical Palladium Shares (ARCA:PALL) should shine this year.
ETF Trends reported that the low price of gas and cheap bank loans may attract more automobile buyers in 2015. As a result, the ETFS Physical Palladium Shares (ARCA:PALL) should shine this year.
As quoted in the market news:
Fueling the increased palladium demand, global car sales increased 3.4% in 2014 to a record 81.6 million vehicles. In the U.S., U.S. auto sales rose to an annualized rate of 17.2 million, the highest since November 2003. Morgan Stanley and Deutsche Bank AG both remain bullish on the palladium outlook because 70% of palladium demand comes from car-parts manufacturers. Specifically, an ounce of palladium supplies enough catalytic converters in about 10 vehicles.
Jeremy Baker, senior commodity strategist at Harcourt Investment Consulting AG, stated:
There’s a very bullish story there that’s going to play out in the long term. There is a good argument that palladium should outperform other precious metals.