Investors with the patience should look at the long-term outlook for Palladium

It has been reported that if Russia continues to sell off its stockpile of the metal at the present rate it will be depleted within five years.

Last year Russia, which accounts for about 40% of world annual production of around 8.6 million ounces, sold off 1.49 million ounces, double that of 2006. 

Johnson Matthey, the UK based global metal distributor, expects supply to tighten this year and the metal to trade in a $400 -$575 an ounce range.

At last weeks New York’s close the spot price was $447 up circa $15 on the news. An hour into Europe’s (0500 EST) Monday open the price was $447.

An interesting first issue of ‘ Materials in Transport’ published by VM Group and Fortis Bank foresees greater demand for Platinum, Palladium and Aluminum as the search for better fuel economy, lower carbon emissions and alternatives to fossil fuels gathers pace.