London, 17 June 2011

The contrast with palladium fundamentals could not be more stark, with palladium’s deficit versus platinum’s surpluses – plus a more positive palladium demand picture going forward – pointing to a reversion to 2010 style PGM relative price performance trends in the second half of this year.

Palladium was very the darling the of precious metals world in 2010, with prices ending the year almost 90% up on a London PM fix basis. In contrast, Palladium’s sister metal platinum struggled for momentum, rallying only 15% during 2010. Indeed, long palladium/short platinum was one of the popular trades of 2010, very much driven by significantly differing market fundamentals.

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