What is palladium used for in 2023?
Palladium is a rare and lustrous silvery-white metal that belongs to the platinum group of metals.
Palladium is widely used in the automotive industry for catalytic converters, where it helps convert harmful pollutants in vehicle exhaust gases into less harmful substances.
Palladium is also used in the production of capacitors, connectors, and other electronic components. It is valued for its electrical conductivity and resistance to corrosion.
Furthermore, it is often alloyed with other metals like gold and silver, is used in dental fillings, crowns, and bridges due to its biocompatibility and aesthetic qualities.
It’s worth noting that the uses of palladium may evolve over time due to technological advancements and shifts in market demands.
What is causing the shift in the palladium price?
Firstly, a rising demand from China is expected now that a lot of bans are being lifted from the COVID-19 times. Of course, it has one of the largest needs for industrial metals, which would cause the price to shift upwards for palladium.
Another factor is the United States economy. The dollar has been battling for a while now to keep up with the world economy.
However, the latest inflation hikes, as well as the policy changes that are awaiting us with the banks, have caused the dollar to shift upwards and artificially increase prices on the market.
The strength of the dollar often is tied to the pricing of the metals and commodities, but it seems that palladium has actually surpassed the trend and grown even higher during this period.
What does the future of palladium investments look like?
The danger of the artificially increased dollar could predict a drop in the prices in the future.
When the global economy heals again and the interest rates for banks is allowed to go into a downward trend, the dollar will equally heal itself back to a reasonable position.
This would also mean that pricing for consumer goods like food, electricity and gas will go down, but also that the investment market will see prices for palladium drop with it.
The future of palladium is predicted to be a volatile one. Since it is mostly used in industrial applications, the economy as well as industrial shifts will cause the price to fluctuate both ways.
When wars are happening on a global scale, palladium could be benefiting, as it can be used for many applications needed during warfare.
The political instability that comes with this, however, will also cause trade and production to shift, therefore changing the course of your investment.
It is important to keep the price of palladium in check when you are investing in it and always keep yourself updated on news that could potentially influence the trend.