The Most Highly Traded Commodity of 2018

As 2018 appears in the rearview mirror, I thought it would be interesting to write about what palladium has done in recent history. For the first time the price of palladium surpassed the price of gold. It was the most highly traded commodity in 2018. That in itself is a huge statement.

In 1992, palladium’s low was $78 per troy ounce. It has doubled in price since 2016 and increased 450% from 2008 to present.

Palladium is a metal with many unique properties and is used primarily in catalytic converters. 80% of palladium usage comes from them. In recent years European car buyers have been switching from diesel cars to gas fueled cars creating a larger demand.

One of the larger factors for the increased use of palladium in cars is the China market. China auto sales have increased every year since the early 2000’s. In fact, China sold the largest number of cars in the world for the 9thconsecutive year.

Conversely to the increase of palladium usage for catalytic converters, electric cars are increasing in popularity very dramatically. In China, tax incentives to buy gasoline powered cars will be ending soon.

So who knows what the future holds for palladium as there are a number of factors that could swing the pendulum either way. 

Christopher’s Rare Coins is looking forward to another interesting year in the rare coin and precious metals business. We are also looking forward to seeing you soon in our store or at a coin show.

Stay tuned next month for more “Did You Know?” stories.

Kind regards,
Chris Seuntjens
Christopher’s Fine Jewelry and Rare Coins