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Palladium: The precious metal nobody is talking about but should be

by , 06 January 2017
Palladium: The precious metal nobody is talking about but should be
At times like this, gold and silver typically grab all the attention... And attract all the "safe" money. But there's another metal that could blast past both of these. That's because it has unique physical properties for which there is just no substitute - something its biggest consumers lose quite a bit of sleep over. It's 15 times more rare than platinum... and 30 times more rare than gold. Read on to find out more about palladium, the precious metal nobody is talking about, but should be...

Why Palladium is a great investment

Palladium is in heavy - and growing – demand. It's found in everything from jewellery to dental equipment, including a wide range of electronics. Tablets, flat screen TVs, iPhones, iPods, iPads, iEverythings...

They all require palladium, Peter Krauth in Money Morning US explains.

Electronics represent 12% of gross palladium demand.

For perspective, there were 5.4 billion cell phones on the planet in 2009. By the end of this year, estimates are that there will be 8 billion. It's going to take a lot of palladium for the world to keep talking, texting, and tweeting.

But its most significant use is in the automotive industry, where fully two-thirds, or 67%, of all palladium is consumed each and every year.

Catalytic converters ALL require palladium

That's because palladium is found in virtually every single fuel-powered vehicle's pollution-controlling catalytic converter.

And global light vehicle production has been on a tear in the last couple of years, with no signs of abating. 2011 saw 77 million light vehicles produced, and 2012 saw 81 million. This year, it's expected there will be 85 million units produced, and by 2017, IHS Automotive forecasts 102 million units.

By 2018, China alone will likely be manufacturing and buying about 31 million vehicles annually.

Developed and developing economies alike have adopted increasingly stringent emission control standards, boosting the need for palladium.

There's little doubt, we're going to need a whole lot more of this specialised metal.

With demand only set to climb, the palladium price should follow suit.

How to invest in palladium

And if you're wondering how you could potentially profit from the demand for palladium, there are plans to launch a palladium back ETF in the near future in SA. So keep your eyes peeled.

Thirty-six percent of the world's palladium is mined in SA.

So there you have it, palladium, the precious metal nobody is talking about but should be.

Palladium: The precious metal nobody is talking about but should be
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