Thursday, April 15, 2010

North American Palladium (AMEX:PAL) Surges on Reopening of Lac de Iles Palladium Mine

North American Palladium (AMEX:PAL) exploded by over 7 percent today on the news it is reopening its Lac de Iles palladium mine, the key mine of the company.

A secondary factor has also affected the overall palladium and platinum industry, as news China may be hungrier for the two metals over gold has investors looking at the possibility closely.

Going beyond the usual idea of use in catalytic converters, palladium and platinum are also being eyed by consumers for jewelry, as it seems some are abandoning gold for the latest fad, although we'll have to wait to see if that emerges as a longer term trend. Gold usually never goes out of favor in that regard, but rising prices could result in consumers turning to alternative metals, as shown by the much more price of palladium, even after going as high as $548.50 an ounce on Wednesday. Much of that is of course attributed to catalytic converters and anticipated increasing demand.

Either way, the reopening of the Lac de Iles palladium mine by North American Palladium will give them a big boost, and the additional demand from China for cars and jewelry should offer strong support for the share price of the company.

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