When selecting the primary choice of minerals for investors, gold and silver have always been the primary choice. However, the case has changed with the coming of Palladium. Palladium, once considered a precious metal, is now being used to substitute for gold in various industries. It is used in jewelry and is also used as an industrial metal. In January 2019, Palladium made a gross improvement in value, going past gold as the primary choice of investors.
The primary reason for the high price of Palladium is that it is used in the manufacturing of catalytic converters. Every car made has to have a catalytic converter to meet the emission standards set by the government. The prices of Palladium, once $700 per ounce, have gone up and are now over $1,000 per ounce.
The rise is because the demand for Palladium has gone up. The market comes from China and India as these two countries manufacture more cars than ever. If you are considering investing in Palladium, you should know that it will only be worth it if you can sell it to someone who needs it in their car or any other product that uses Palladium as an ingredient.
What is Palladium?
Palladium is a typical chemical represented by the formula P.D. The element has 46 as its atomic number and an atomic weight of 105.5. This metal is very resistant to corrosion and is used to produce catalytic converters.
It is also used in jewelry and electronics and is an essential component of other compounds such as palladium black and palladium hydroxide. The chemical has a cubic crystal structure with the atoms arranged in a hexagonal lattice.
Palladium was first discovered by Albertus Magnus, who was born on July 28, 1200 A.D., at Lauingen, Germany. He was the son of Heinrich Schaffgotsch and Margareta Katzenelenbogen, both from noble families in Germany. Albertus received his doctorate from the University of Padua in Italy after completing his studies at the University of Cologne (1215).
Albertus worked for several years as a professor at Cologne before experimenting with alchemy after meeting Nicholas Flamel (1214-1290), who had been studying alchemy for about 20 years before meeting Albertus Magnus. Flamel had written an encyclopedia about alchemy called "The Book of Abraham." However, it would not be published until 1527, almost 100 years after Flamel's death.
Albertus' first significant discovery with alchemy was when he created gold by combining sulfuric acid with carbon dioxide gas in 1248 A.D., which was important because this discovery paved the way for him to discover other elements. He also found the element beryllium. Albertus Magnus also discovered rubidium, cesium, and thallium after combining ammonium chloride with carbon dioxide gas in 1250 A.D. It is unknown if Albertus Magnus ever wrote down his discoveries in a book or if they were recorded by Flamel or by another alchemist.
What is Palladium used for?
Several industries use Palladium; however, the automotive industry has the highest demand for the element. Here are some of the practical uses of Palladium:
The automotive industry has been the largest palladium user since the 1970s when most countries implemented emissions control laws. In the early 1980s, diesel engine catalytic converters and after-treatment systems became available.
These systems are used to reduce emissions from a vehicle, including reducing the amount of carbon monoxide, hydrocarbons, and nitrogen oxides emitted during vehicle operation.
A typical automobile exhaust system has two parts: a catalytic converter and an after-treatment filter. The catalytic converter is designed to convert hydrocarbons into carbon dioxide and water while reducing nitrogen oxide emissions by more than 99 percent.
Palladium is also used in many other applications, including jewelry, electronics, batteries, nuclear reactors, and pharmaceutical processes. For example, Palladium is also used in radiation therapy for cancer patients. It effectively shields patients from harmful radiation produced by medical imaging machines like C.T. scanners or X-ray machines to detect fractures or tumors within a patient's body.
Medical imaging equipment uses X-rays within a patient's body to create internal organs images so that doctors can locate cancerous tumors or other abnormal growths within these areas of the body. However, this type of radiation can be extremely harmful to healthy cells within these areas, so they become damaged over time due to exposure.
The Key Differences Between Gold & Palladium Pricing
The price of spot gold is approximately 1800 dollars per ounce. Conversely, the case is different for Palladium, costing roughly $2550 per ounce. This difference is that while gold is an industrial metal, Palladium is used in the automobile industry.
The fact that the price of Palladium has been rising for a long time has made investors believe that it will go up further in the future. The belief has also made them invest in this commodity rather than gold which is considered a safe investment option. However, some people believe that gold will outperform Palladium in the future.
Historic Palladium Price History vs. Gold
After the disruption of Palladium supply in China at the tail end of the year 2001, there was a drastic rise in the palladium price to $1,100 oz by the time it was January 2002. Since then, the palladium price has been trading between $700-900 oz and has remained relatively stable. The case was a, however, different for gold.
The price of gold peaked in August 2011 at approximately $1,900 oz. Since then, gold prices have been trading between $1,350 and $1,500 oz. The above graph shows that Palladium has traded at a premium to gold compared to the past ten years.
Historic Gold Price History vs. Palladium
Diverse factors have played a role in influencing the price of gold over the past decades. These factors include the U.S. dollar, the Euro, inflation, and other economic factors. The cost of gold has continually risen since its introduction as a form of currency in Asia. Gold prices are influenced by many factors, including economic growth in developing countries and the quality of life there.
The price of Palladium has been rising since 2001 when it was only $119 per ounce (oz). In the fall of 2007, palladium prices reached an all-time high of $1,100 per oz. Since then, the price decreased to about $520 per oz in April 2009. The decrease was because of a recession that affected many investors who sold their precious metals holdings to raise cash for living expenses during this period.
Is Palladium a good investment?
Extensive knowledge of Palladium will determine if it is a good investment. The ongoing price rally of Palladium since 2009 is due to the supply and demand factors. Demand for Palladium is increasing as more industries adopt it in their production processes.
Palladium is a white metal used in automobile production and jewelry making. It has the highest level of corrosion resistance and wears among other metals. The price of Palladium has been increasing since 2009 due to increased demand from the automobile industry and jewelry manufacturing companies.
Palladium prices have been forecasted to grow by 3% annually through 2017. Therefore, economists can conclude that Palladium is a good investment for the future.
Top-Rated Palladium & Gold Price Chart Resources
The U.S. Money Reserve has been the best chart resource in offering information regarding gold and palladium prices. The chart ensures the accurate provision of current data on the cost of Palladium and gold. It is a unique chart as it offers a comprehensive analysis of trends in the market. The chart also explains trends in the market.
Gold is the most popularly used form of money. It is used as a form of investment as well as a form of currency. Gold is believed to be the safest financial investment to make. It is also the most popular form of money in the world.
However, the demand for Palladium has gone up. The market comes from China and India as these two countries manufacture more cars than ever. If you are considering investing in Palladium, you should know that it will only be worth it if you can sell it to someone who needs it in their car or any other product that uses Palladium as an ingredient.