Gold $2,375.60   $-40.60  Silver $27.96   $-1.24  Platinum $945.40   $-20.20  Palladium $928.50   $-20.50

Palladium and gold are excellent metals for creating wedding rings, bracelets, and other forms of jewelry. Each metal has its own special appeal to the eye and the heart, but one is more expensive than the other simply because of the way it’s used in manufacturing. Palladium has some important and varied uses. The precious metals experts from First National Bullion, the best place to buy gold in Scottsdale, offer the following comparison between palladium and gold.

A Large Market Doesn’t Consider Gold an Asset to Hold

Due to cultural changes, China, the world’s biggest consumer of gold, is starting to have an apathetic view toward this precious metal. The Chinese usually use gold for jewelry, but the younger generation doesn’t consider gold to be a good investment. This attitude is different from times past and directly affects the price. Considering China’s population hovers around one billion, it’s easy to see why.

A New Trend Is Fueling the Demand for Palladium

Growing concerns about air pollution in European nations have become springboards for the price of palladium. Palladium is used in catalytic converters on cars and trucks. This metal inside the converter scrubs the exhaust of pollutants that would otherwise be ejected into the air. Diesel engines put out a lot of these pollutants, and studies done in 2015 found that even the cleanest diesel engines failed to meet the strict European emission standards. This created a rise in demand for palladium, and when demand rose, so did the price. The demand has gotten so high that thieves in Europe now steal catalytic converters in broad daylight.

The practice of making autos with internal combustion engines is declining, and electric vehicles are manufactured with different processes and metals. One very important part of the electric car is its battery. Palladium is an integral part of the batteries in these cars. Again, with the trends toward cleaner air and slowing down global warming, this metal is receiving more attention.

The Price of Palladium Has Rocketed Past Gold

In the first part of this year, the price of palladium zoomed to $1,400 per ounce. Since then, the price of palladium has been equal to or higher than gold. Markets show a bullish trend for both metals, but palladium is performing better than gold. Palladium has remained more expensive than gold for around eight months. Analysts and experts are expecting palladium to keep rising and reach $2,000 per ounce next year. At the current limited level of supply, consumers aren’t satisfied with the present production rate of palladium. In addition, market tensions between the East and West are producing a heavier reliance on metals instead of fiat money. With its newfound usefulness, palladium seems set to continue to be more expensive than gold for the near future. 

Whether they’re looking to buy or sell palladium bars, gold coins, or silver bullion, Scottsdale residents trust the reputable dealers at First National Bullion and Coin. You can rely on our experienced professionals when you’re looking to add precious metals to your investment portfolio. Call one of our precious metals experts today at 480-546-8928.

The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.

By |2020-07-14T14:21:34-07:00December 16th, 2019|Miscellaneous|0 Comments