Societe Generale Says Palladium Prices Overbought, Buy on Dip

The rise in palladium prices will undergo a correction says Societe Generale, and are overbought at this time. When the correction comes, they recommend buying the dip.

So far in 2010 palladium has soared by 89 percent, generating the idea of the probability of a correction sometime soon.

This is being viewed in the short term, and with supply not able to keep up with growing demand, it will be temporary. Any time a weakness in the metal comes about, investors are encouraged to buy at that time.

ETFS Physical Palladium Shares (NYSE:PALL) closed Tuesday at $72.79, down $2.82, or 3.73 percent.