Palladium has gained close to 50% over the past 5 months.
Palladium has been on a multi-year run that shows few signs of abating. Palladium, which is used in pollution-controlling solutions on modern vehicles, has been significantly increasing in value over the past few months.
Experts say palladium is close to becoming the most ‘precious’ of precious metals.
Overall, growing global demand for the mainly industrial metal has the Federal Reserve worried about tighter supplies.
While the escalating U.S. and Chinese trade war hurt some commodities in 2018, it couldn’t dent palladium’s rise, and had no effect on gold and silver.
Demand for palladium was especially strong last year, as environmental concerns have prompted a global shift requiring more palladium for the Auto industry.
Further more, Supply shortages continue to support palladium’s performance, with strong multi-year growth in demand and a fixed supply, palladium is especially scarce and its supply is limited since it is usually a by-product of ores that are being mined for other metals, like platinum and rhodium.
Analysts are pointing out that the physical market (for palladium) is so tight we are seeing ETF holdings being withdrawn in order to meet that physical demand from the industrial sector, this means money is moving out of paper and into physical assets.