Palladium futures climbed Friday to set a record and some analysts say there are no signs of slowing down even as the metal’s rally has entered a sixth year in a row.
“Many people think palladium at $ 1,000 is a bubble. What a mistake, ”R. Michael Jones, CEO at Platinum Group Metals Ltd. PLG, said. “As the world economy emerges after the COVID economic lockout, private transport will almost certainly be very popular.”
“Palladium looks very good here in the short to medium term,” he told MarketWatch. The long-term new applications for palladium and other platinum group metals look very interesting ”in terms of the energy transition from hydrogen to batteries, he added.
rose $ 35.30, or 1.3 percent, to a record high of $ 2,774.70 an ounce on Friday, according to Dow Jones Market Data.
“As the global economy emerges from the effects of door locks, the demand for consumer and industrial goods is growing,” said Chris Blasi, president and president of Neptune Global. “Increased car production directly drives increased demand for palladium, which is based on a strategic metal whose annual industrial demand has outstripped mined production for several years.” Palladium is primarily used in catalytic converters in gasoline-powered vehicles to help control emissions.
“In addition, the growing geopolitical tension with the world’s largest supplier of palladium, Russia, is a factor that cannot be ignored or mitigated,” Blasi told MarketWatch. There is also a “critical shortage” in the metal, which looks “trying for the foreseeable future,” he said.
When asked how palladium can be so high this year, Blasi said the chances of it hitting $ 3,000 “are still very real.”
Palladium data shows that palladium prices have risen about 13% per year, after posting five-year increases in a row.
Peter Thomas, senior vice president of Zaner Precious Metals, also gave an optimistic outlook for palladium amid growth expectations in the photovoltaic sector and electric vehicle markets. Palladium is used in electronic and solar energy applications. Photovoltaic electricity is used to generate electrical energy through solar cells.
have low resistance values - and they’re great for semiconductor chips, says Thomas.
Based on his recent discussions with several platinum and platinum producers, he believes palladium prices could face a climb to $ 3,500 next year.