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Will the Price of Palladium Catch Up with the Price of Platinum?
DisneyFan
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This morning MONEX is quoting Palladium $1,466.00 + $18.00, Platinum $1,595.00 +10.00
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Maybe....they're close enough it's not a big outperformance needed.
What advantage does Palladium have over Platinum?
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The density of palladium is less than platinum.
This means that one troy oz of palladium will cover more surface area than one troy oz of platinum (assuming the same thickness). This is important for catalytic converters and other catalyst applications.
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In terms of future demand or pricing, palladium does not have an advantage. 84% of it is for catalytic convertors in gasoline vehicles. Temporary supply issues due to geopolitics in Russia and South Africa could give it a short-term boost but longer term I see it dropping below $1,000/ounce.
Platinum is the future "investment" choice of the two, as it is projected to have a 1-million-ounce supply deficit a year for 3 more years as above ground stocks are depleted. 40% of it is used in hybrid and diesel engine catalysts and particulate filters, other uses include fuel cells, chemical processing, jewelry, medical devices, coins, and investments. In China platinum demand has increased for both jewelry and investment as gold has become a bit expensive in comparison.
I sold all my palladium eagles, but I plan to keep my PCGS platinum eagle registry set for several more years.
My US Mint Commemorative Medal Set
Looks like the market heard you.
After both going higher, this evening MONEX is quoting Palladium $1,465.00 -$30.00, Platinum $1,608.00 -$10.00
I’m not sure either are good for numismatics even though we have the most beautiful artwork on these metals. The volatility in the markets make these metals a terrible place for coins , though. Talk about taking it in the shorts. Still, the deigns are the best.
To answer the original question : maybe, maybe not. Great question.
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