Palladium is more valuable than gold for the first time since 2002, with prices soaring by around 50 percent in less than four months to record levels — just as gold failed to capitalize on some seemingly bullish scenarios.
A sustained supply deficit coupled with robust demand and rising interest from speculators have pushed prices of palladium – used mainly in emissions-reducing catalysts for vehicles – from around $832 an ounce in mid-August to a high of $1,263.56 per ounce on Wednesday.
Palladium was trading at a premium of more than $25 an ounce to gold on Wednesday, in striking contrast to about two years ago when bullion was twice as expensive.
“It (parity with gold) is fundamentally justified. The market has been in sustained deficit and the effects of that are being borne out,” said Marcus Garvey, analyst at ICBC Standard bank.