If you have been following the palladium price over the past six months you know how crazy it has been. Fluctuating up and down and now seeming to rest at a point where it is worth more than Platinum. In order to understand the price of Palladium, it is important to know what it is used for.
The majority of palladium, 49% in fact, is used in catalytic converters. Palladium is also used in jewelry and in the dental industry to make crowns and bridges. Palladium has good mechanical properties for dental use: for one it is tarnish and corrosion resistant and it is safe to use orally. In addition, it retains its color unlike some other metals. Gold is also great for dental but historically cost prohibitive. Palladium typically has provided a lower price point but that is changing.
In September 2017 Palladium surpassed Platinum in price and was trading at $936 an ounce, then it further climbed when it hit another milestone in October 2017 at which point it rose past $1000. Some say the rise in use of gas powered catalytic converters was the reason and growing demand in the auto sector. There are even predictions in the market that there will be an ongoing supply deficit, but they appear to be unsubstantiated.
Here is what we can be sure of: Russia is the world’s largest Palladium producer, contributing 40-50% of the global Palladium output. If you have been watching any news station lately you know that sanctions are being contemplated by both the US and Russia. This is definitely affecting Palladium prices. If the unrest continues, the price could skyrocket or plummet depending on who is sanctioning who.
Today’s price is still well over $900 an ounce so if you are holding Palladium, you are in the money. We say, get it in and collect.