“Don’t forget about me!” Palladium.
Gold and silver have always been the major players in the world of bullion investments, with gold being the obvious big brother.
However, Palladium and Platinum are making their way to centre stage in popularity, proving to be as valuable and influenceable of an investment vehicle as gold and silver.
You can review our recent blog on Platinum here.
But let’s focus a little bit more on Palladium.
CNBC, Reuters, Bloomberg and other leading financial reporting publications have been touting the spectacular gains for Palladium in January and it’s getting a little tough to ignore the phenomenal power of this precious metal.
At Express Gold Refining, we do not ignore any player in the precious metals category and see Palladium as an excellent investment opportunity. That is why we offer it to our clients.
But let’s look deeper into the factors that would support the Palladium trend.
At the end of January 2021, Palladium marked its best performance since Sept 2021, a surge of 23.2%, while Platinum advanced 5.7%.
One of the biggest utilizers of these precious metals in China and as they work on fixing the supply chain for their manufacturing sector, it is inevitable we will see a significant increase in purchasing for these precious metals with a big demand for Pallium in particular.
In addition, the North American car manufacturing sectors need access to Palladium, as all semiconductors are created with this precious metal. In fact, Palladium is so crucial to the car manufacturing industry that about 85% of Palladium finishes can be found in catalytic converters in car exhausts, enabling a reduction of toxic pollutants into less-harmful carbon dioxide and water vapour.
Furthermore, Palladium is heavily used in electronics, dentistry and jewellery. What a metal!
According to Morgan Staley, a rebound in auto production should create an upside in Palladium in 2022. The bank sees the metal averaging $2,100 an ounce by next year, compared with the current spot market price of about $1,890.
Palladium is the most valuable of the four major precious metals, which justifies including it in your portfolio. So what are you waiting for?
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