over 4 years ago • 2 mins
Back in December, we noted that gold had been knocked off its traditional top spot as the most valuable precious metal. The commodity that took its place? Palladium. And while the price of gold rose 9% in June, palladium did even better...
These turn toxic exhaust fumes into less harmful emissions. And as European drivers desert more polluting diesel vehicles and Chinese automakers prepare for their own tougher emissions regime, demand for palladium has shot up despite slowing global auto sales. A weakening US dollar has also made the dollar-priced metal cheaper overseas 🙃
As demand has grown, palladium’s price has also risen. In December, it outstripped gold’s for the first time in over 16 years – and has stayed there ever since:
You do know your art history: palladium’s use in photography was once widespread. But what with the ubiquitous Facestagram, it’s unlikely many people are using the pricey metal to take snaps nowadays 📸
Automaker demand, however, is forecast to grow by a third by 2025. And a lack of mining investment is constraining supply in the short term: US mines produced 7% less palladium in 2018 than they did the year before, and future Russian supplies are uncertain.
The relatively small size of the palladium market makes its price particularly volatile, and gold remains the safe haven of choice for stock market-spooked investors. But those with real art history chops will recall the other meaning of “palladium”: a talismanic image that protects its owner... 🤞
Whichever lucky charm you favor, the duel for the crown of “most precious precious metal” looks set to continue for some time to come.
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