Fox Business – Step aside gold, its platinum and palladium’s time to shine. The two metals are off to a strong start this year, sending exchange-traded funds indexed to the precious metals to 17-month highs.
Palladium prices are up 11% so far this year while Platinum has rallied nearly 10%. Supply worries due to mine closures in South Africa coupled with reports that Zimbabwe’s government is seizing land from platinum producer Zimplats Holdings are raising fears of a supply shortage, and investors are looking to cash in.
Strong auto sales in the U.S. and China are also adding demand since both platinum and palladium are used in catalytic converters. U.S. automakers reported a 14.2% sales increase in January from a year earlier while China reported a 46% surge.