Palladium breaks the $1,400 barrier for the first time
JSE investors who own palladium via the three products available have made an annual gain of about 42%
Palladium broke the $1,400/oz barrier on Friday morning for the first time after JPMorgan Chase & Company said it is betting the metal is headed to nearly $1,600/oz.
The price of palladium, which is mainly used in catalytic converters for petrol engine cars, has rocketed despite gloomy forecasts for car sales in the coming years. Palladium at over $1,400/oz and platinum at under $800/oz reverses their prices from five years ago when car makers switched metals to save costs. Although it might make sense for carmakers to switch again, Dow Jones reported that industry specialists say that is a lot easier said than done. It would take carmakers two years to make the change, and they need to be convinced the palladium price will remain at least $500/oz more than platinum for years to come, Dow Jones reported. Thursday morning’s 1.1% rise in palladium to $1,414.33/oz was probably thanks to a bullish note JPMorgan e-mailed to clients. The bank said it bought palladium at $1,357.50/oz...
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