By any definition palladium is a rare and valuable metal. Yet it does not customarily enjoy the cachet and prestige of gold, silver and platinum. That may change, as investors learn of its unique and promising attributes.
Over 90% of current demand for the lustrous white metal palladium comes from its use in four sectors: autocatalysts, i.e., catalytic converters in gasoline and diesel engines (50% of total demand), a market in which it competes with its sister metal platinum; jewelry (15%) where it is used alone and to make white gold alloys; electronic switches, capacitors and contacts (15%); and dental bridges and crowns (12%).
Palladium's Investment Prospects
Palladium's immediate future largely depends on those legacy markets continuing. Called the "metal of the 21st century," palladium's unique attributes could contribute to explosive demand in three emerging industries:
