Analysts are forecasting a flood of car buying in the U.S. that will help float platinum and palladium prices higher in the months ahead. Both metals are heavily used in the automotive industry for catalytic converters – a car part that helps scrub car exhaust from the air.
As an HSBC analyst told Mineweb:
“We believe that the increase in demand for heavier vehicles – which also require greater PGM loadings and which have risen sharply in recent months – will act to support prices.”
Speaking of palladium, the lesser know precious metal went on a tear in 2014 (one of the few metals to do so). Again, the automotive industry seems to be the cause.
According to The Street:
“In November, auto sales figures hit record highs in both Canada and the US, and that trend is set to continue.”
Visit Provident Metals so take a look at the current spot platinum and palladium prices.