"Physical palladium ETFs occupy an unusual corner of the commodity market. Unlike gold or silver, palladium serves primarily industrial purposes, with roughly 80% of demand coming from automotive catalytic converters. abrdn Palladium ETF Trust (NYSEARCA:PALL) offers direct exposure to this metal through physical holdings, and after surging 92% over the past year to around $168, investors face a critical question: can this rally continue?"
"The fund has climbed back to levels not seen since late 2021, driven by growing recognition of supply constraints in the palladium market. Palladium's recent strength stems from concentrated production risk. Russia and South Africa control the majority of global supply, and geopolitical tensions combined with mining challenges have created periodic shortages. When Sibanye Stillwater, a major producer, faced profitability pressures in 2024, analysts noted potential for supply disruptions that could squeeze short positions in futures markets."
abrdn Palladium ETF Trust (NYSEARCA:PALL) provides direct physical exposure to palladium and has risen roughly 92% over the past year to about $168. Palladium demand is roughly 80% automotive, primarily for catalytic converters, and the fund's recent gains reflect concerns about concentrated supply from Russia and South Africa. Geopolitical tensions and mining challenges have created periodic shortages, and a September-to-October volume surge pushed prices above two-year resistance. Producer pressures at Sibanye Stillwater raised supply disruption concerns. Elevated prices encourage higher output, while substitution to platinum and the long-term shift to electric vehicles reduce structural palladium demand.
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