Will the Price of Palladium Go Up?
Palladium has grown in popularity as a means of investment in recent years. Palladium, in contrast to gold, is predominantly used in modern industries as well as jewelry and investment. Investors took notice in 2019 when palladium's price surpassed that of gold.
Investing in palladium as a hard, dollar-denominated metal may have several advantages. The following are a few such advantages:
- Diversification of assets in one's portfolio.
- Price growth is possible.
- Protect yourself from the risk of a weakening currency.
- 0% chance of a counterparty default.
There have been many ups and downs in the price of gold over the years as a result of various political and economic events. In June 1982, the price of an ounce dropped to a record low of $47.46. Palladium's price chart remained relatively stable over the next 13 years, with the metal selling on average at $100 per ounce.
During and after the Great Recession, more and more people choose to invest in gold and silver, making this a very profitable market. Palladium's price rose as a result.
With the exception of a few short-lived declines, palladium's value has risen steadily since December 2008. The metal's price increased by 45% in 2016. During the previous year, it saw a 60% increase. It increased by 15% last year.
What are the Benefits of Palladium?
Investing in palladium has been increasingly popular after the global financial crisis of 2008. Highly sought after by investors due to its scarcity and diverse industrial uses, this precious metal can be an excellent hedge against rising inflation as well as unpredictable periods in the economy and the political climate.
Platinum's Practical Uses
Its primary commercial usage is in catalytic converters, which are found mostly in gasoline and hybrid automobiles and are responsible for regulating emissions.
This technology converts dangerous gases like carbon monoxide and nitrogen dioxide into less damaging nitrogen, carbon dioxide, and water vapor, using the vast majority of palladium (more than 80 percent).
William Hyde Wollaston made the first formal discovery of palladium in 1803. Pd is the symbol and 46 is the atomic number of the metal. Palladium is a platinum group metal with a glossy, silvery-white look. It is part of the PGM family of metals. Platinum, rhodium, ruthenium, iridium, and osmium are all members of this metal family, although palladium has the lowest melting temperature and is the least dense. Catalytic converters are made from this metal, and that's one of their principal functions.
With palladium's market being so small, investment levels have a greater impact than they would have if the market were larger, such as gold, on the price volatility.
What's the Status of the Supply Chain?
Byproducts of platinum and nickel mining include palladium. In recent months, the price of these two metals has dropped significantly. The mining industry is experiencing a decline.
Despite the fact that no one can foresee market prices, one can make an educated prediction based on various aspects, such as current economic trends and supply and demand. For the avoidance of doubt, we are not speculating on palladium's future price.
The price of Palladium will rise.
As a result of the coronavirus outbreak, analysts and traders have lowered their predictions for platinum and palladium, two autocatalyst metals, but they still expect prices to climb gradually.
Engine exhausts, where platinum and palladium are commonly employed to minimize pollutants, are the primary application for these metals. Platinum is also used to make jewelry, but it is more expensive than gold.
Adding Palladium to Your Portfolio as a Diversification Strategy
Is palladium a sound investment in the end? Purchasing palladium carries the same risks as any other investment. When added to a well-diversified investment portfolio, palladium, however, is predicted to continue to shine well beyond this year.