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Why U.S. Car Sales Are About to Boost Palladium Prices

Domestic motor vehicle sales climbed in May to their highest level since U.S. companies combined to sell some 14 million vehicles in January 2006. ETF Securities U.S. research director Mike McGlone tells TheStreet's Joe Deaux that palladium, used for catalytic converters in U.S.-manufactured automobiles, and the other platinum group metals (PGMs) are poised for a stronger run than gold, which is currently stuck in a trading range. McGlone says that the precious metals with industrial applications -- platinum, palladium and silver -- should benefit from an increase in industrial production.