G old glittered for a while last year, but platinum and palladium kept shining throughout 1999 and are doing even better in 2000. Despite this, the shares of publicly quotd companies that produce the white metals have been weak this year. This presents a buying opportunity. The reason for the buoyancy is surging demand and inelastic supply.
Palladium is a key ingredient in the catalytic converters that control harmful car emissions.
As environmental regulations tighten, automakers need more palladium. Russia is a frightening supplier. It supplies about two thirds of the world's palladium needs, and half of the Russian supply comes from stocks. In the first six months of each of the past five years, it intermittently cut off supplies, scaring consumers. With palladium and platinum prices up, so are Russian export revenues.