Palladium: the most expensive precious metal on a record hunt

The price of an ounce of palladium has reached the $ 2,000 mark, has risen by more than 50 percent since the beginning of the year, and has also clearly outperformed the gold price in the course of the record hunt.

 

Palladium price rises and rises

When it comes to price developments, a precious metal outperforms all other investment metals. The palladium price has reached a new all-time high. On the US commodity market, the March contract was closed on Monday at close of $ 1,964 an ounce. This morning, the precious metal was already trading at $ 1,990 on the spot market. That corresponded to 1,785 euros.

 

Most expensive precious metal

As a result, the palladium price scratched the $ 2,000 mark and it has already posted a 59 percent price increase since the beginning of the year. At the same time, the item was more expensive than the gold price was ever traded on the stock exchange. The gold ounce reached a maximum of $ 1,900 in US futures trading. That was on August 22, 2011. In euros, the all-time high in the gold price was only reached on September 9, 2019 with 1,418 euros.

 

Palladium indispensable for Otto-Kats

The palladium price benefits from high demand parallel to a clear supply deficit. The automotive industry needs the metal to manufacture catalytic converters in gasoline engines and is by far the largest consumer with around 80 percent of the demand. In the past year, the demand was greater than the supply. The Hanau technology group and metal processing company Heraeus already anticipated a continuing shortage of supply at Palladium in February.

 

Palladium as an investment

Like gold and silver, palladium can also be bought in the form of coins and bars for investment. However, the products have a high premium and even higher spreads (difference between selling and buying price in the trade). Both are around 30 percent and more. This is due on the one hand to the full amount of VAT incurred in Germany (19 percent) but also to the overall low trading volume.