Most commonly used for cars’ exhaust systems, palladium has recently shot above gold in price. Earlier this month palladium scooted in front of gold for the first time in 16 years, and held this position for three days.
The record-breaking rally came after its price surged more than 50 per cent in four months, as demand grew and supply shrank. The precious metal is most commonly used to reduce cars’ exhaust emissions. As it’s a noble metal it’s resistant to corrosion. The silvery metal is a byproduct of mining other metals like gold and was previously considered worthless.
Most of it is produced from Russian nickel mining and South African platinum mining. Car manufacturers love it because it converts harmful carbon monoxide into less harmful substances.
And as manufacturers increasingly look for ways to cut their products’ emissions, palladium has become an attractive commodity. The metal, which is a cousin of platinum, is also used in surgical instruments, dental alloys and electronics like mobile phones.
Spot pricing of palladium has the precious metal at $AU1,769.05 per troy ounce. That’s above gold’s $AU1,737.85 per troy ounce. However this is unlikely to last.
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