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The Wall Street Journal reported today that an increase in automobile sales and production is helping to push up both price and demand for palladium.
The Wall Street Journal reported today that an increase in automobile sales and production is helping to push up both price and demand for palladium. According to the Journal, the white metal has hit $834 on the stock market this year, outperforming both platinum and gold.
As quoted in the press release:
lobally, three out of the four automobiles sold run on gasoline. Manufacturers prefer to use palladium-based converters in their vehicles, rather than platinum, which is more expensive. Palladium is more resistant to heat than the platinum that is often used in diesel-car exhausts, which generate lower temperatures. Palladium is also used in cars powered by natural gas, which is a growing niche offering in emerging markets such as India. Brazil, India and Russia are expected to experience robust auto-sales growth this year. India car sales in 2014 are expected to rise 10% to 3.2 million units, Frost & Sullivan said.
Senior Market Strategist at EverBank Wealth Management, Chris Gaffney, told the Journal:
As more and more lower-income people in those countries move into the middle class and start to purchase vehicles, the need for palladium will increase to keep up with the demand.