“A homerun or more in 2015 is very likely” for palladium, according to Seeking Alpha. The market watchdog pointed to steadily rising prices in the last few years and the boost in profitability for miners thanks to the recent reduction in production costs.
Adding to the pot, the precious metal is currently experiencing a growing deficit that is expected to grow even more in 2015, putting more strain on supply. Market deficits in 2015 are estimated to rise to their highest levels in 45 years, say analysts.
As one expert told sources:
We estimate palladium was in deficit to the tune of 1.65 million oz last year and expect the market to record a deficit to the tune of 558,000 oz in 2015.
And what about demand? Well that picture is looking promising too.
Roughly 50 percent of the world’s palladium supply goes into catalytic converters, a key component of vehicles. Encouragingly, auto industry specialists believe vehicle sales will continue to rise in 2015.
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