Why Is Palladium More Expensive Than Gold?
When you think of the most expensive metal, gold might come to your mind, Right? Well, the truth is, it’s not. Gold is quite expensive, but in the recent decade, Palladium has overperformed gold and has become the most expensive precious metal in the investment market.
Palladium is another metal that is considered a great investment option by experts. Here’s why Palladium is more expensive than gold.
What Is Palladium Metal?
Palladium is a soft silvery-white metal discovered during the same time as platinum. Palladium belongs to the platinum family, including rhodium, platinum, iridium, osmium, and ruthenium. Palladium is the least dense metal and has the lowest melting point compared to other members of the platinum family.
Pure Palladium isn’t found naturally. South Africa and Russia are the leading producers of Palladium. It occurs as a byproduct of platinum metal.
Where Is Palladium Used?
The automobile industry used the most amount of Palladium. They use it in the automobile exhaust. Automobile exhaust contains toxic emissions which are hazardous to health and the environment. Automobile industries use Palladium as it’s a crucial catalytic converter component. They convert about 90% of toxic emissions into less harmful substances.
Palladium is also being researched in the energy sector to create hydrogen fuel cells, which focus on creating cleaner energy.
Why Palladium Price Rises?
Palladium price has grown over the recent years. Before 2018, gold prices were higher than palladium prices, but today palladium prices soar high above the yellow metal. The significant increase can be explained using the law of supply and demand.
The palladium metal supply is extremely limited. Only two countries, South Africa and Russia contribute to most of their production. For nine years, the metal supply has been lower than the demand. Automobile industries need it the most.
When a commodity has a low supply and increased demand, it increases the commodity price.
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