Friday, January 30, 2009

Precious Metal Prices, Palladium May Rise!

I got an email to my cell phone from an overseas friend telling me that gold is higher than it's ever been. What? What does that mean about the price palladium? I replied telling him that unless gold jumped from $900 yesterday to $1000 today then he's mistaken! It turns out that gold is its highest in a few months, and he got the two confused.

When we see an increase in gold price palladium may or may not follow. Platinum groups metals are more industrial than they are financial. If there are increases in gold and silver prices palladium along with platinum and rhodium may increase as well, simple because they are precious metals. However, gold decreases in a strong economy, whereas palladium increases in a good economy if there is more demand for the PGMs for (mainly) the auto industry.

Future Prices Palladium Increase?

A one ounce palladium rise is not imminent, but it has risen 10% up to nearly $200 an ounce. 1 oz palladium has been around the $170 range for months. Gold's jumped up around 7%, and silver has jumped from $11 up to $13. That's something to be noticed! Silver up 15%! Platinum seems to be moving up just enough to remain ahead of gold. We'll see how that works out.

1 comment:

  1. It's interesting that Palladium doesn't always move up or down in alignment with gold. Gold has industrial and medical uses too but I guess a lot of its value comes from its identity as "real money" rather than from simple demand. So when the economy is bad people throw their money into gold even if the supply is down.

    You're right I made a mistake on the gold price, thinking that it was the first time to break $900. It was really the second time, as it did pass $1000 last spring. I wasn't following gold closely enough at that time because I was pissing around with worthless mutual funds.


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