After a huge run, Palladium prices have collapsed over 71% since March 2022 and now look to be oversold. Below are six strong reasons to add Palladium to your portfolio:
1. The Platinum Group Metals (PGM) mining industry is in crisis with prices trading below cost of production.
2 Plug In Hybrid Electric Vehicles (PHEV) look to be the future. PHEV’s will need Palladium or Platinum catalytic converters. Toyota, Ford and Hyundai are ramping up production to meet demand with more autos to follow.
3. Enormous naked shorting of Palladium futures have artificially driven down prices on the COMEX….A major short squeeze is on the cards.
4. The UK and USA recently sanctioned most Russian mined metals but left Palladium off the list due to “supply chain sensitivities”. In other words they are screwed without reliable Russian Palladium.
5. Palladium is 15 times rarer than Platinum yet currently trades at a lower price.
6. South Africa and Russia who are both members of BRICS, could easily mandate a floor price on what miners could export Palladium at. Paying for the privilege of supplying the market, when having such a dominate position is beyond ridiculous.
We recommend buying ETPMPD (last sale $137.70) which is the physically backed Palladium ETF on the ASX. With prices below the marginal cost of production it’s the furthest thing from a bubble!