business management

What is Going to Happen to the Price of Palladium in 2018?

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2017 was most definitely a good year for palladium. There were problems with supply but its demand was ever increasing, thanks to the auto industry. This led to a price increase of 51%. It started the year at $685 per ounce, and finished it at more than $1,000. Will such a high price be a sustainable one?

There are two main factors that will affect its price in 2018.

Increased Demand

The demand from the automotive industry for palladium is what drove the price up in 2017. Palladium is used in the catalytic converters of petrol-fuelled cars, popular in the US and China. Drivers in Europe are also looking more favourably at petrol powered cars, following the VW scandal involving emissions rigging in 2015. However, depending on who you listen to you can be led to believe that the demand for new cars is slowing down, as people turn to …