Another supply deficit is helping palladium to the upside. “It’s a confluence of factors,” says Tai Wong, head of metals derivatives at BMO Capital. “Fundamentally, there’s going to be a material deficit this year and automakers need to restock.” SPPP Specs The return to lower interest rates around the world has also continued to support demand for physical assets, which tend to exhibit an inverse relationship to interest rates since investors are less apt to hold raw materials when bonds offer higher yields in a rising rate environment. Though it’s not an ETF, SPPP offers tax benefits too.