A palaver over Palladium or is it worth investing in?

[Foster88]

Hi all, 

I've been hearing a lot of 'noise' about Palladium in recent months and I've been doing my own research on the now new precious metal that was once a bi product of Platinum mining. 

I've read that it is mostly used in diesel exhausts which as we know aren't very popular these days as people are looking for 'cleaner' cars but recently I've read a lot about the demand coming from hybrid electric cars which still require Palladium and they surely are going to be on the rise in the coming years but they can't mine Palladium fast enough. 

Has anyone else looked into Palladium? The prices are quite high now being over gold per gram but it does make me wonder about long term investment. A wise choice or a bad idea?

I'd be interested to hear other opinions on this and the above information is from limited research I must add.

D

[blindguy]

I might be wrong but isn't palladium mined mostly from only a few countries?  Also I thought I heard that platinum can be a substitute for palladium? Might want to check this out first.

[DarkChameleon]

Palladium replaced platinum in cat converters when it was cheaper, now it's significantly more expensive but woukd require retooling to move back to platinum, it will reach a point where retooling is viable but electric cars are reducing the need for cat converters, so the demand and need for cheaper materials is in flux...one thing is palladium does not have much demand  the jewelry market that platinum does, it was used to make gold into white gold butnowitsmoreexpensivethen gold so makes no sense in using it for that, u less thereis and need other need for palla dim over platinum then it should fall again, perhaps not bac, to its former $400 an ounce but perhaps under $1000, and for platinum to move to the $1200 level, I can see them falling back j to a second position behind gold...I can see palladium reaching $1800 or more any time soon but platinum reaching $1000 seems more likely.

[vand]

You're looking the wrong way. The Plat:Pall ratio is touching record levels in Palladium's favour.

The overwhelmingly smart thing to do is to accumulate Platinum for the move back the other way.

 

Plat:Pall ratio has historically swung by a factor of x10 in favour of one and then back to the other. Why would you want to buy Palladium today when the pendulum looks ready to swing back the other way:

http://schrts.co/bxYhVNmy

[Foster88]

On 17/07/2019 at 09:23, vand said:

You're looking the wrong way. The Plat:Pall ratio is touching record levels in Palladium's favour.

The overwhelmingly smart thing to do is to accumulate Platinum for the move back the other way.

 

Plat:Pall ratio has historically swung by a factor of x10 in favour of one and then back to the other. Why would you want to buy Palladium today when the pendulum looks ready to swing back the other way:

http://schrts.co/bxYhVNmy

I’m not sure where I sit with that. I appreciate your point and have thought about it but if the uses or rather the ‘demand’ for platinum keeps going down if the main use is in catalytic converters for diesel cars which are slowly declining then what is going to keep the price up? 

It can’t surely be the jewellery business if the value of platinum drops so low, who’s going to want it?

Please excuse my niavety as I’m relatively new to the precious metal ‘world’ but I can’t see why platinum would peak above palladium anytime soon. 

D

[vand]

11 minutes ago, Foster88 said:

I’m not sure where I sit with that. I appreciate your point and have thought about it but if the uses or rather the ‘demand’ for platinum keeps going down if the main use is in catalytic converters for diesel cars which are slowly declining then what is going to keep the price up? 

It can’t surely be the jewellery business if the value of platinum drops so low, who’s going to want it?

Please excuse my niavety as I’m relatively new to the precious metal ‘world’ but I can’t see why platinum would peak above palladium anytime soon. 

D

But you're looking at this only through the paradigm of the last 20 years during the era of mandatory catalytic convertors. Platinum and Palladium were around before then, they had factors driving their relative price, and they'll be around afterwards as well, when new factors will drive their price. That is the way of all markets.