In fact, a new 2010 high for platinum was reached last week. A few factors have contributed to the gains seen in platinum and palladium in recent months:
- South Africa said production of platinum group metals rose 46% in September as price gains spurred output and after a labor strike at Impala Platinum Holdings Ltd. cut shipments in 2009, Carli Lornes for Business Week reports.
- South Africa is expanding extraction of the metal as an increase in demand from auto and jewelry makers boosts prices. The country has about 75% of the world's reserves.
- Palladium is getting a boost from demand, too, rallying 75% this year. Sara Grillo for Business Insider reports that palladium is rarer than gold or platinum.
- Jason Scott for Bloomberg reports that platinum for immediate delivery has surged as high as $1,808.50 an ounce, the highest level since July 2008. With a triple threat of investment demand, ETF demand and industrial demand, platinum group metals could be poised for even more.
ETF Securities Physical Palladium (NYSEArca: PALL)