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Why is Palladium More Valuable Than Gold?

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.

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