What is the precious metal 'palladium' that has doubled in price for more than a year and has become more expensive than gold?
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The metal called palladium is classified as a noble metal together with gold, silver, platinum, etc., and is used as a gold-silver palladium alloy used for dental dental silver teeth (inlays) , and as a discount for gold and platinum. The price of such palladium has risen sharply, and it has become a hot topic that it has exceeded the price of gold and has nearly doubled the price of platinum.
Why Palladium Is Suddenly a More Precious Metal: QuickTake-Bloomberg
https://www.bloomberg.com/news/articles/2019-10-28/why-palladium-is-suddenly-a-more-precious-metal-quicktake-k2ap4ryc
Palladium climbs to $ US1,800 an ounce peak-9Finance
https://finance.nine.com.au/business-news/palladium-climbs-to-us1-800-an-ounce-peak/3c2d8032-4ade-4577-8e29-07ebbd365429
The price of palladium was lower than $ 900 per
Most of the palladium produced is not used as a precious metal, but as a catalyst for automobile exhaust gas purification systems. Palladium-based systems convert toxic chemicals emitted by automobiles into carbon dioxide and water vapor, which are less toxic, and are mainly used in gasoline cars. Platinum, the same precious metal, is also used in exhaust gas purification systems for diesel vehicles, but this seems to be in a declining trend due to the recent reduction in diesel vehicle production due to stricter exhaust gas regulations.
The main sources of palladium are Russia and South Africa, with an annual output of approximately 200 tons, less than one-tenth of gold. In addition, since palladium is basically produced as a byproduct of platinum and nickel, the output is also affected by the production trends of the main products. Tai Wong, Bank of Montreal 's precious metal trading specialist, commented on the recent surge, “Palladium is continually and continuously in short supply.”
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Bloomberg pointed out that the surge in palladium is partly due to the imbalance between supply and demand. As governments act to control automobile exhaust gas pollution in many countries, automakers are forced to increase the amount of palladium used in exhaust gas purification systems.
On the other hand, the amount of palladium produced as a by-product has been rising sharply since it was produced in less than demand for the eighth consecutive year until 2019. Although speculative movements have also been activated since August 2018, the price of palladium in transactions that are quickly transported to buyers after transactions is higher than that of transactions that are slower to manufacture. There seems to be no doubt that contractors are competing for palladium.
If demand for rare metals used by automakers exceeds supply, prices have soared in the past, and platinum has recorded a 500% increase over the decade since 1998. Bloomberg says automakers may give up on an exhaust gas purification system using palladium and start developing a system using another catalyst, but it takes time to develop a new system, It points out that consumers may be affected by the price increase of automobiles.
by Life Of Pix
Wong said about the rising trend of palladium: “Suddenly the price increase suggests that there may be a rebound at some stage, but the outlook is strong. Can cost as much as $ 2,000 (about 220,000 yen) or more. '
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