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Palladium’s rally threatened by automakers' pivot to platinum

davidkdavidk Posts: 274 ✭✭✭
edited August 16, 2021 8:31AM in Precious Metals

https://www.miningweekly.com/article/palladiums-rally-threatened-by-automakers-pivot-to-platinum-2021-08-13/rep_id:3650?fbclid=IwAR3XRrdBHY01ttNoX34_4_l9meCISFBzsfpa8G6PnYWt1Y45G3nTiRETyuM

"Around 85% of global supply of the silvery-white metal is used in pollution-reducing catalytic converters in gasoline engines. The surge in prices coupled with advances in technology, however, are making it more attractive for automakers to use the much cheaper platinum. Further out, palladium faces an existential threat as electric vehicles gradually replace those using gasoline, meaning the current rally could well be its last."

Comments

  • davidkdavidk Posts: 274 ✭✭✭

    Hmmm....

  • thebeavthebeav Posts: 3,741 ✭✭✭✭✭

    I've been wondering for some time why they haven't reverted back to platinum.
    Interesting......

  • LukeMarshallLukeMarshall Posts: 1,881 ✭✭✭✭✭

    @thebeav said:
    I've been wondering for some time why they haven't reverted back to platinum.
    Interesting......

    From what I understand, to achieve the same result at palladium, you need twice as much surface area of platinum in petrol engines.

    Plus changing auto cats to use platinum instead of palladium ( and vice versa) requires years of R&D and re-tooling.

    IMO palladium showed us that it is the canary in the coal mine so to speak. When large players want to push the price of silver and gold, there are an abundance of paper contracts to do so… not so much with the palladium market, which when a little demand showed up the price jumped from $700 to $3000 in a few short years.

    It's all about what the people want...

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