First, the numbers. It has been a rally week for precious metals, with gold up 1% to $1,930 and silver up 8% to $24.52. Platinum and palladium were both 4.6% higher, at $947 and $1,318 respectively.
From a year ago today, gold is up 10%, silver is up 28%, platinum is 6.5% higher, and palladium is down 34%.
So, the question of how much palladium is worth has a short answer and a longer explanation. The short answer is, “It depends.”
As you can tell from the movement in the palladium price in the last week (+4.6%) and the last year (-34%), it is a volatile metal often sensitive to economic and geopolitical events.
One of the reasons for palladium’s volatility is the rarity of the metal. There are only a few places where palladium is mined, with the top 2 locations being Russia and South Africa. Both of these nations are in the BRICS+ sphere of trading partners, who are currently moving away from transacting business in dollars.
With uncertain supplies available from Russia (sanctions, etc.), unstable local conditions in South Africa, and increasing demands for palladium from a burgeoning fuel cell industry, palladium’s worth could receive a significant boost.
Having dropped 58% from the peak achieved in 2022, palladium is much closer to a low than a high and worthy of consideration for investment at these levels.