Palladium is a Metal Rarer Than Gold. Now It's Even More Rare, Thanks to Cheap Oil
By GCRU Gold News on Tuesday, January 20 2015, 10:08 - Permalink
The lowest oil prices in five years and cheap bank loans are helping to extend a rebound in automobile sales that began in 2009, boosting demand for everything from catalytic converters to Alcoa Inc. (AA:US)’s aluminum sheets and Goodyear Tire & Rubber Co.’s wheels. Even after palladium prices soared to a 13-year high in September, Morgan Stanley and Deutsche Bank AG remain bullish because car parts account for 70 percent of the metal’s use.
“Palladium is an exciting place to be because of its exposure to gasoline,” Scott Winship, a fund manager at Investec Asset Management, which oversees about $112 billion, said by telephone from London. “U.S. auto demand is incredibly strong and might even surpass previous peaks that we saw before the financial crisis.”