Palladium is Rare Plus, restrictive environmental policies limiting the extraction and mining of the metal have further constricted global supplies. Palladium's relative rarity makes it a valuable investment option when used to strategically diversify a Precious Metals portfolio.
Relatively hard: Palladium is considered to be a softer metal, but it is still much harder and more durable than gold, which lends more protection against impact and a greater resistance to denting. Compared to gold's knoop hardness of 200, Palladium has a knoop hardness of 400.
While platinum will hold up better against impacts that might dent your ring, palladium is more resistant to scratches. For example, the prongs holding the center stone of a platinum engagement ring are less likely to break than those of a gold engagement ring.
Palladium is expected to be a profitable investment in 2023 due to a combination of macroeconomic and fundamental drivers.
The Global Palladium Coated Copper Bonding Wires Market Size Reached USD 1295.6 Million in 2021-2022. It is Expected to Grow at a CAGR of 18.6% till 2030. The Global Palladium Coated Copper Bonding Wires Market to Reach the Value of USD 3605.5 Million by the End of 2030.
Palladium is a store of wealth whose value moves at a similar pace like that of gold. Moreover, palladium is a rarer precious metal that gold, which means its value can increase in the future. Keep in mind that palladium is more volatile compared with other precious metals.
On February 10th, Nornickel announced that it expects its palladium production to drop in 2023 due to planned refurbishment at its Nadezhda metallurgical plant. A report by Reuters said that the company's palladium output is likely to fall by 8%-14% than in 2022 in the range of 2,407-2,562 koz.
Consumer demand will be key to 2023 growth
“The health of the automotive sector will remain palladium's leading barometer — after all, the sector accounts for over 80 percent of demand,” Swarts said. Metals Focus sees auto production growth being marginally positive for palladium demand in 2023.
Historically, recessions have been positive for the gold price. In the absence of further major shocks in 2023, investors might look to put their money into commodities, particularly gold but also silver.
Of the two metals, platinum is stronger than palladium, but again both metals are strong enough to be used for engagement rings or wedding rings that are worn daily.
In the past 12 months, platinum has lost 18%, but still outperformed palladium, which dropped 54%. Palladium was “badly hit” by an anemic auto sector, and demand hasn't recovered since the pandemic, says Nikos Kavalis, managing director at Metals Focus.
Jewelry makers are especially keen on palladium because it does not tarnish like other metals such as silver or gold. In recent years, however, the price of palladium has surged due to increased demand from the automotive and. electronics industries. Palladium is becoming one of the most expensive metals on earth.
According to the latest long-term forecast, Palladium price will hit $1,500 by the middle of 2023 and then $2,000 by the end of 2024. Palladium will rise to $2,500 within the year of 2026, $3,000 in 2027, $3,500 in 2028, $4,000 in 2029 and $5,000 in 2031.
Palladium is expected to trade at 1326.90 USD/t oz. by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1182.39 in 12 months time.
The explanation for Buffett's dislike of gold and for his enthusiasm about silver stems from his basic value investing principles. Warren Buffett has been very vocal about his disdain for gold as an investment. He sees little to no value in it.
RHODIUM: TOP MOST VALUABLE METAL
Rhodium is the most valuable metal and exists within the platinum group of metals. It is used in jewelry for a final finish on white gold jewelry. It occurs in the very same ore in which gold and silver exist – only, in smaller quantities.
Gold ingots are highly recommended by all Feng Shui masters as the symbol of wealth and abundance.
The metal is more expensive than gold, and molecules that contain palladium can also be extremely toxic to humans and wildlife. Chemical manufacturers have to separate out all traces of palladium from their products and carefully dispose of the hazardous waste, which adds extra expense.
Palladium is estimated to be about 15 times rarer than platinum, making it significantly more expensive per ounce. In fact, palladium is currently the most expensive among the four major precious metals (platinum, gold, and silver).
That is now changing. Electric vehicles (EVs) that do not need palladium are gaining market share and automakers are substituting some palladium for cheaper platinum in combustion engine vehicles. Meanwhile, supply from recycled cars is rising as those containing more palladium reach the end of the road.
The consequence of this short-term price spike, to levels well above the price of platinum, was substitution of palladium by platinum with a significant demand increase for less expensive platinum.
Invest in palladium stocks
Since most palladium is produced via mining, most palladium stocks are mining-related. You can invest in palladium stocks with most online brokers, and their performance will correlate with the price of palladium.
Palladium price is also falling as investors bet that the demand and supply imbalance will get close in 2023. Historically, palladium's supply has always fallen short of demand. As companies boost their mining activity, we could see the gap narrow.