How to trade the best palladium stocks
Palladium trading: what you need to know
Palladium is the most expensive of the four precious metals in the world – namely gold, silver, platinum and palladium – a distinction earned due to its scarcity and the difficulty in extracting it from the earth.
Although slightly cheaper per ounce than its rarer and lesser-known cousin, rhodium, palladium is currently much more expensive than gold and is one of the most popular commodities in commerce. Russia and South Africa are the country’s two largest palladium-producing countries. world, and both are known for their rich mineral reserves.
Due to its incredibly limited use thanks to its high price, palladium does not have dedicated miners who focus on it like companies can focus on mining for gold or silver. Instead, it is mined as a byproduct of digging for other metals.
For this reason, the main drivers of the price of palladium are often related to mining, such as the supply of the precious metal relative to its demand – something palladium traders should keep in mind.
Palladium is used in small amounts in many capacities, but its biggest consumer is automotive manufacturing, which uses palladium in catalytic converters, as well as in the exhausts of hybrid electric vehicles. However, a major disruptor to the popularity of palladium could be the rise of electric vehicles (EVs), which do not require the precious metal.
See what the price of palladium does