Palladium’s year-to-date rally on the heels of a stellar 2019 has some investors wondering whether a correction is imminent. Perhaps so, however, there are strong fundamentals still underpinning the rally. Demand is soaring, as tightening emissions controls force automakers to increase the amount of the precious metal they use. Supply is constrained, with the market entering its ninth straight year of deficit. Lease rates have spiked, suggesting that manufacturers are scrambling for supply. That all points to elevated prices and a boon for palladium producers.

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