Why is Palladium More Valuable Than Gold?

For the longest time, gold has reigned supreme as the most valuable of all precious metals. But within the past few years, palladium has proven to be the most significant of investment potential. Last year, palladium started getting a rise in popularity as this metal’s value was surpassing that of gold’s, piquing many investors’ interests.  Since then, palladium has been dominating the market when it comes to precious metals. “But why?” you might ask.

If you wish to know more about why palladium’s value has been higher than gold’s since 2019, then continue reading below to see why and how this precious metal has been dominating the market.

What is Palladium?

Before even wondering why palladium is more valuable than gold, you might’ve asked yourself “what is palladium?”

In short, palladium is a lustrous white metal that belongs to the six platinum-group metals. Most of the palladium that’s found typically ends up in the exhaust systems of cars. This is because the precious metal helps turn toxic pollutants into less harmful carbon dioxide and water vapor. You will also see palladium used in electronics, dentistry, and especially jewelry.

Most of the world’s palladium comes from Russia and South Africa. It’s usually extracted as a byproduct during the mining of platinum and nickel.

Why is it More Valuable Than Gold?

In short, the reason why Palladium is more valuable than gold is that the former metal hasn’t responded to growing demand more than the latter. The usage of palladium is increasing since many governments are attempting to crack down on pollution from vehicles. In China, especially, automakers are forced to increase the amount of precious metals they use for catalytic converters.

Why is The Price Rising?

As mentioned above, the global demand for palladium hasn’t been met for quite some time. And experts agree that it won’t continue to meet global demand for a while.

Because it’s a secondary product of platinum and nickel extraction, miners are unable to increase its output in response to rising prices. And because of this, 2020 might be the 9th year in a row where palladium demand is unmet. This is determined due to South Africa – which produces around 40% of the world’s supply – likely being unable to increase output once again.

Also, because countries have been demanding more of palladium for cars, other parties have seen the potential in this metal’s value. This has resulted in thefts of vehicle’s catalytic converters (where the metal is stored). And due to this thievery, more and more of the precious metal has been demanded.

Want to Invest in Palladium? Contact William Youngerman

If you find the investment potential of palladium intriguing and wish to purchase or even sell it, call William Youngerman in Boca Raton today. William Youngerman is very passionate about the values of precious metals. In his business, you’ll find that he can assist you in the sales of gold, silver, platinum, and palladium bullion, coins, and jewelry. For any inquires, you may call William Youngerman at 1-800-327-5010 or visit our contact page.

What is Palladium & Why Should You Invest In It?

It’s a metal you’ve probably never heard of before and you might be thinking to yourself, “why would I want to invest in it?” The metal seems foreign to you and purchasing it might not seem like a great idea. That is, until, you see its value. Palladium, as it turns out, might be the absolute best investment you could make right now. Its price has been soaring for the past few years and experts seem to agree that buying palladium would be one of the most significant purchases you can make. Continue reading below to see what makes this metal so valuable and why you should buy it.

What is Palladium?

Palladium is a white material that is one of the four precious metals and also one of the six platinum-group metals. It’s most popular use is its appliance in automobile converters to reduce pollution. It’s also used in electronics, dentistry, and jewelry. What makes it underrated as an investment opportunity is that it’s tremendously unknown to many potential buyers. It’s usually shadowed by gold’s popularity despite it being much more valuable.

Why is it so Valuable?

The main reason why the metal is valuable is that it’s highly demanded by the automobile industry. As pollution regulations are getting tighter, many automobile companies are required to reduce the emissions of their products. China especially – being notorious for its pollution – has placed tighter restrictions on automobile companies, forcing businesses to utilize more of the precious metal. Supply, however, has not been able to keep up in demand for at least nine years and experts believe we’ll see palladium prices skyrocket again in 2020. Its dependency has become so common that it’s now more valuable than gold.

Why is Supply so Tight?

Because palladium is a byproduct to platinum or nickel, producers can’t respond quickly enough to price changes. Due to the supply of palladium not possibly being able to meet demand again this year, prices are projected to continue soaring. Also, because Russia and South Africa are the major sources of palladium mining, both countries have been facing supply disruptions. Palladium supplies are highly susceptible to mine production halts and political disruptions, hence why prices have been sharply increasing over the past few years.

Get Your Palladium From William Youngerman

Though rare, many businesses can offer consumers palladium items for purchase. One such business happens to be William Youngerman in Boca Raton, Florida. Since 1967, William Youngerman has been offering services in coin dealing for customers on both a national and international scale. If you wish to purchase or sell your palladium – or any precious metal, for that matter – from a trusted business, look no further than William Youngerman. To schedule for an appointment, call us at (561) 368-7707 or visit our contact page.