Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Palladium Price Hits 16-Year High

  by    0   0

Palladium probably isn’t something you think about when you consider investing in precious metals.

Maybe you should.

Palladium broke through the $1,000 mark on Monday. The price of the metal has spiked nearly 50% in 2017 and is at its highest level in 16 years.

A UBS strategist told CNN she’s convinced palladium’s strength is driven by fundamentals.

Like silver, palladium has both industrial and investment value. It is used in cars, electronics, dentistry, and jewelry. Between 1988 and 2002, the Canadian mint produced a palladium Maple Leaf coin.

Commerzbank analysts talked up palladium in a note to its clients.

Palladium is continuing to soar. Not only does demand from the automotive industry appear robust — speculative financial investors are also remaining loyal to palladium.”

Analysts say the surge in the price of palladium is due to strong demand for the metal, coupled with tight supply. About 78% of the demand comes from the auto industry. The metal is used in catalytic converters for gasoline-powered engines. The drive to curb auto emissions and the “demise of the diesel engine” in passenger cars has boosted demand for the metal.

According to analysts at City Index, tight supply is the primary factor driving the price of palladium.

Palladium supply is at its lowest level for 14 years and demand has been outpacing supply since 2011.  There is a strong potential for an ongoing supply deficit in the coming months, which could trigger a further price rise.”

Joni Teves, an analyst at UBS, told the Telegraph there is a currently a major shortfall in palladium production. The market could hit a deficit of 830,000 ounces this year, as miners have cut back production due to unproductive mines and increasing mining costs.

Russia and South Africa lead the world in palladium production.

The palladium market’s downside stems from its heavy reliance on the auto industry. Some analysts say the eventual rise of electric vehicles will impact the demand for metals used in catalytic converters. But electronic car technology still appears a long way from mass consumer acceptance. Their lack of range, the need for frequent charging, and their cost makes electric vehicles less than ideal for the average person.

The palladium market is much more volatile than gold and silver, but it could serve as an excellent diversifier for your precious metals portfolio. Call 1-888-GOLD-160 to talk to one of SchiffGold’s precious metals specialists today to learn more about investing in palladium.

scam-2-sm

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Stagflation Warning: Atlanta Fed GDP Estimate at 0.5%

As governments shut down the economy in response to COVID-19 and the Federal Reserve put money printing into hyperdrive, we warned that it was a recipe for stagflation. Today, it looks like stagnation is here. Stagflation is an economic environment with rapidly rising prices, a weak labor market, and low GDP growth. It’s looking more […]

READ MORE →

Chinese Gold Demand Continues to Strengthen

Gold demand in China was up in September, as the country approaches a peak gold-buying season. Both gold withdrawals from the Shanghai Gold Exchange (SGE) in September and gold imports in August were up, a sign that the Chinese gold market continues to recover after it was hit hard by the coronavirus pandemic.

READ MORE →

JP Morgan Chase CEO Worried About Higher Than Expected Inflation

With CPI data once again coming in hotter than expected, it’s getting harder and harder for the mainstream to swallow the “transitory inflation” narrative. And some people are starting to worry. During an earnings call, JPMorgan Chase CEO Jamie Dimon expressed concerns about higher than expected and persistent inflation ahead.

READ MORE →

American Consumers Continue to Run up Credit Card Debt

Consumer borrowing has slowed somewhat from the record level we saw in June, but Americans continue to pile on the debt. Consumer debt grew by $14.4 billion in August to $4.35 trillion, according to the latest data from the Federal Reserve. That represents a 4% increase. This follows on the heels of a 4.8% increase in […]

READ MORE →

Demand for Silver in Electronics Sector Projected to Surge

The demand for silver is expected to expand along with the continued growth in global connectivity. According to a report released by the Silver Institute, silver demand in electronics and electrical applications is projected to rise by 10% by 2025.

READ MORE →

Comments are closed.

Call Now