This week is an all-metals opportunity, and we will be highlighting palladium again for long-term opportunities.
Gold was down 1% to $1,942, with silver down 5% to $22.91. Platinum and palladium were down 2%, at $966 and $1,422, respectively.
Since a year ago today, gold and silver are both 6% higher, with platinum up 3% and palladium off 24%.
Palladium is currently on sale at 58% lower than its peak a year and a half ago and is much lower to a bottom than the recent top. Palladium is one of the most volatile precious metals we cover and is entering into bargain territory for those looking to diversify.
One of the reasons for the recent price decline is the projection that 2024 could see a 300,000 oz surplus of palladium as an industrial metal. But palladium projections are often hard to predict, as 2023 has proved thus far. Primary palladium producer Nornickel has adjusted their 2023 projections for palladium demand by 600,000 oz, and the year is only half done. Nornickel produces 40% of world palladium each year and knows more than most about the palladium markets.
China, the world’s largest consumer of metals, has seen retail sales increase by 12.7% in 2023 and industrial production increase by 3.5%. If this continues into 2024, current palladium prices could look like a bargain.