| The PGM metals — platinum and palladium — are typically highly correlated assets. However, since February of this year, they have diverged, with palladium pushing toward the highs while platinum has languished. This is a reflection of the relative strength of the U.S. economy vs. Europe.
The primary use of both metals is in autocatalytic converters, with palladium used extensively in gasoline-powered engines (the type favored by Americans), and platinum used in the diesel engines that are much more popular on European roads. Chart 2 shows the sharp difference in demand for new vehicles in the U.S. and in Europe..........................................Full Article: Source
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