New gold: Palladium prices rise and China is participating in credit


Palladium prices have reached record levels this year, jumping more than 9% on the New York Stock Exchange, which is the best metal this year. Investors claim that this competition has begun, says Bloomberg.

growth factors

The market has a very positive, fundamental viewpoint

According to the CPM group, almost 70 percent of the demand Palladium comes from the automotive industry. The metal used mainly in the catalysts has benefited from the shift from the diesel engine to petrol engines to the automotive industry. Change has led to demand in a market that currently has a limited supply.

Experts point out that Chinese battle "smog" it was another factor that increased the increasing demand for palladium, as stricter pollution requirements have led automakers to use more catalytic converters.

Limited offer

"The market has a very positive fundamental perspective (…) We have been dealing with supply disruptions that have occurred eight years, and is expected to continue. Delivery has certainly been a problem in the mining industry and the reduction of existing stocks, "says Aberdeen Standard Investments' Investment Manager, Maxwell Gold.

Market inspectors, including Citigroup, raise higher price increases for the metal achieved this Friday about $ 1170 an ounce.

Palladium is highly concentrated, as in the case of platinum. Russia and South Africa are currently producing around three quarters of the world's excavated supplies. Its main production line in Russia was 81 tonnes in 2017. Russian Norilsk Nickel is the world's largest producer of palladium and has almost 40 percent of world production.


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