Here's the monthly chart of the last couple decades of palladium prices, extending the series in the article below. Via
FinViz:
From Winton's Longer View, June 20,
2017:
The emissions scandal has hit carmakers’ shares, but has also proved a fillip for another type of investment.
Palladium – used in the
catalytic converters prevalent in gasoline vehicles - has been this
year’s best performing commodity, rising 30%. One reason: speculators
betting that car owners will shun high-polluting diesel automobiles,
which use platinum catalysts, and prefer palladium-fitted gasoline
vehicles. As a result, the palladium price is poised for the first time
in 16 years to overtake that of its supposedly superior sibling,
platinum.
The palladium market is both thinly traded and sports minimal stocks,
leaving it prone to big price swings. Booms and busts are evident in
the long-run chart of the palladium price below, some of which have
persisted for years, as this analysis reveals.
Palladium and Platinum Prices (1970-2017)
Source: USGS; CRB; Winton
Indeed, the recent jump pales in comparison to the period
from 1997 to 2001, when prices increased nine-fold, or during World War
I, when they tripled. The historic volatility of the metal’s price has
been compounded by the fact that production has been heavily
concentrated in Siberia and thus linked closely to Russian political
upheaval.
A steely-white metal, palladium was once exclusively used in
industry, including in autocatalysis, jewellery, dentistry, electronics
and the chemical industry. But in recent years it has become an
investment vehicle. Similar dynamics affect platinum, which is sometimes
assumed to be inherently more valuable than gold due to a range of
cultural associations—from credit cards to anniversaries—quite apart
from distinct fundamentals.
War Sparks Rise (1914-20)
During World War I, the need for explosives and engine spark plugs,
which relied on palladium and platinum, caused the prices of both metals
to surge. In 1914, Russia – responsible for 90% of the world’s platinum
and palladium supply - banned the export of unrefined metal to
encourage the development of domestic refineries. The Allies
requisitioned their own stocks and prohibited exports to prevent
reshipment to Germany.
Palladium and Platinum Prices (1910-1970)
Source: USGS; AMM; CRB; Winton
Twin Peaks (1972-80)....
....
MUCH MORE
