The Outlook for Palladium Is Promising—and There’s More!
Most people, when they think of diversifying their investment portfolios, only consider silver and gold (and platinum too, in rare cases). However, another precious metal has become all the rage among investors for the past few years: Palladium.
This precious metal has suddenly become more sought-after than gold. Its value has increased by a whopping 28 percent over the first three months of 2020.
The price of palladium has almost doubled ever since 2018. It moved from a year-high price of $1,201 in 2018 to $2724.90 this year—a remarkable price gain of about 44%!
These numbers have left investment experts and advisors bullish about the growth potential of palladium in the next three quarters of 2020. However, there is more to why palladium can be a dream come true for investors.
Limited Supply of Palladium
Supply constraint is one of the significant factors mainly contributing to the rally toward palladium. Most of the palladium produced worldwide is a secondary product of nickel and platinum, which is why the supply is typically less than the overall demand.
In fact, last year, the palladium market faced a supply constraint for the eighth consecutive year. The continuous shortage has contributed big-time in the ever-increasing value of palladium, and it will continue until better and more efficient methods of palladium production are discovered. And that isn’t happening anytime soon.
Potential Price Surge Ahead
In many countries around the globe, governments are imposing bans on toxic gaseous emissions from the vehicle, which is why more automobile companies are using palladium in the manufacturing of their vehicles.
In fact, according to research, almost 85 percent of all the world’s palladium is used in the making of eco-friendly devices for different types of vehicles.
Automobile companies are also going green because of the change in consumers’ behaviors toward companies that are considerate about environmental protection.These legal and consumer-related factors have led to a continuous surge in demand for palladium over the years.
Build a Stronger Investment Portfolio with Palladium
If you’re planning to add palladium to your investment portfolio to diversify and strengthen it, get in touch with Orion Metal Exchange. Our investment advisors will help you find the best deal for palladium, and you can also buy gold and silver coins online on our website.
Contact us for all your concerns and queries regarding our services.