The metal, which is primarily used to help reduce emissions in petrol-driven cars, has jumped by around 50 per cent over recent months to a high of $1,264 per ounce.
“Palladium is characterised by the strongest supply-demand backdrop across the major precious metals,” consultancy Metals Focus said.
Analysts said they expect palladium demand from the automotive sector to climb to a record high of 8.5m ounces in 2018.
It has been boosted by the move towards petrol engines and the growth of hybrid vehicles, which tend to run on petrol and electricity.
“In the short term, more speculators could jump on the bandwagon and drive the price even higher, says Commerzbank.
The dealer market is feeling this Palladium price increase too, “We say this is especially true as the palladium market is comprised of the perfect combination of small supply and incredibly high demand,” says Jack Dempsey, President of 401 Gold Consultants LLC.
Most investors are going for physical purchases of Palladium, “this has made the new U.S. Palladium Eagle hard to find as high grade coins disappear first and prices are skyrocketing.”
adds Dempsey.
Whatever your long term goals are, recognizing Palladium as a “buy” in precious metals looks like a good idea, maybe even great.
401 Gold Consultants LLC