(Bloomberg Opinion) — Platinum’s lesser-known cousin keeps going from strength to strength. Palladium, once considered an unattractive by-product of platinum mining until the rise of catalytic converters in the 1970s, is hitting new records.
Spot metal peaked at an all-time high $1,344.41 a troy ounce Wednesday. Over the past month, it’s been more costly than gold, which hasn’t happened since 2002. From a point a decade ago when an ounce of platinum bought you more than 5 ounces of palladium, it now buys you about 0.6 ounces.
You might think this spike will spark an immediate reversal and slump, as is often the case with commodity prices. That may not happen, though, because prices still aren’t high enough to prompt a supply surge. Continue Reading →