History of Palladium Prices
When investing in Palladium, you'll want to know more than the Palladium price. You'll want to explore what key factors influence the price of Palladium. One world event can send the Palladium price soaring or slipping. Not all economic news affects all Precious Metals prices the same way.
Take, for example, the Volkswagen recall of diesel cars. The Volkswagen diesel car recall happened because the company wrote software that would fool emissions tests, so the cars appeared more environmentally friendly than they are. Palladium and Platinum are key components to catalytic converters in cars. These converters help transform gas into less harmful substances. But only Platinum is used in diesel car catalytic converters.
Palladium, on the other hand, is typically used in gasoline-fueled cars. As a result, this one event could potentially boost the use of Palladium with more gas-fueled cars being produced and therefore boost the Palladium price on higher demand. And, of course, the potential lower demand for Platinum with possibly fewer diesel cars on the road could affect that Precious Metal's price.
PALLADIUM PRICES DEPEND ON POLITICS OF SUPPLY
When considering the current price for Palladium, you'll want to look at the historical prices, then consider other factors that have and will continue to influence the price. Supply and demand are both key factors. It is important to know most of the world's Palladium comes from South Africa and Russia.
As you consider the bullion prices for Palladium, take some time to understand the supply chain. For example, as a strike in the South African Platinum mines wore on in 2014, both Platinum and Palladium prices began to rise. The Platinum strike affected Palladium because both are part of Platinum-group metals. The South African strike was so important to both Platinum and Palladium prices because the strike idled 60% of that country's Platinum-group metals output. South Africa's mining of these Precious Metals affects 45% of global supply.
Also, consider the amount of world Palladium supply produced by Russian mines and the geopolitical issues the country has encountered in recent years. If a second cold war emerged, the price of Palladium would likely move upward. These are just some examples of local and worldwide political events that can affect Palladium.