Buy palladium: The precious metal in the industry
Because of its unique chemical composition, palladium is used almost exclusively in industry, for example as a catalyst to reduce emissions from vehicles.
Compared to gold and silver, palladium is less sought after by investors. One of the reasons for this is that investing in the precious metal is a bit more complicated. An investment can be all the more worthwhile because palladium is a relatively crisis-proof raw material. The platinum metal is increasingly being used in industry. According to commodity experts, demand could soon exceed supply.
Palladium is in demand! Because of its high palladium content, more and more catalytic converters are being stolen from vehicles, according to the ADAC. 95 percent of the palladium produced worldwide is used in industry. For comparison: gold is 11 percent and silver 55 percent. Because industry uses much of palladium production, very little is purchased by investors or jewelry consumers.
Palladium is mainly used in the automotive and electronics industries. 85 percent of the demand comes from the automotive industry. There are fewer diesel vehicles in Europe than in the USA and China, which is why demand in Germany is lower. Platinum is used in diesel engines.
In addition to demand, supply also influences the price. In the last ten years, this has always fallen short of demand. This was most recently the case in 2020, when a Russian mine filled up with water and a key supplier in the market was unable to deliver as a result.