The tight supply of palladium in 2011 will encourage higher prices for the metal over the course of the year. Russian state stockpiles are rumored to be dwindling and may run out because of the increased industrial demand for the metal. In South Africa the ability to increase production is hampered by a lack of reliable electricity. These factors play into the rising expectations for palladium prices in 2011.
The price of palladium is soaring to a 25-month high on the back of rebounding automotive sales, ETF trading and concerns over a depletion of Russian stockpiles. The price has doubled in the past year, and some analysts see the trend continuing.
Palladium is just another metal that is having a bad year, and according to an industry report things will not be looking up anytime soon. The outlook for palladium in certain applications is positive, however deteriorating economic conditions around the globe continue to impact price.
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