Do you believe the world will embrace a green path toward the future?
“Palladium is a key component in pollution-control devices for cars and trucks,” he wrote. “About 85% of palladium ends up in the exhaust system in cars, where it helps turn toxic pollutants into less-harmful carbon dioxide and water vapor.”
Of course, as you can see by this Market Ear chart (which was highlighted in our “Need to Know” column), buyers have already been flocking:
ED&F Man Capital Markets analyst Edward Meir made the comparison to Elon Musk’s company in a recent interview with Bloomberg News.
“Palladium has been unbelievable — it’s like the Tesla stock of commodities,” he said. “Prices are caught up in the rally in precious metals. Whenever these metals rally palladium tends to move as well, but by a greater magnitude.”
The rally in palladium has also been goosed by expectations that China will enforce stricter environmental standards that will trigger increased demand.
Meanwhile, prices just keep pushing deeper into record territory. At last check, palladium was up another 1.5% at $2,610 on Thursday.
Don’t expect the market to dry up anytime soon, either. According to Anglo American Platinum, global demand for palladium will exceed production by 1.9 million ounces this year, though the company said in its annual report that auto makers may start using more platinum as an alternative.