An article in the Wall Street Journal (April 25, 2012) describes rising prices of palladium, a metal used in gasoline car exhausts. It is the sister metal of platinum, used in diesel car exhausts. Rising sales in the US and China have driven up demand for palladium, while weak sales in Europe have flattened platinum demand. Russia has indicated that sales of palladium from its stockpiles will be decreased, thus potentially shrinking supply. The resultant 2 % rise in palladium prices has resulted in a forecasted rise in prices per ounce from $ 665 to $ 1000 by 2013. Given these different drives of palladium prices, are the forecasted price increases credible ? During past palladium crises, technological innovation decreased demand for palladium in car exhaust systems – would you expect a similar impact this time ? Will the planned Chinese vehicle emissions standards (thus requiring more palladium content in cars), which will boost palladium demand in China, further push up palladium prices or would you expect the regulation to be delayed given current conditions ?