Demand for physical palladium is set to rise by a large amount in the next year due to a global supply deficit that has run since 2012 and the price of palladium will rise with it. Palladium is a key component of a catalytic converter, the part of a car engine that prevents CO2 and other toxic emissions from escaping into the atmosphere, and it is also a vital element in the production of fuel cells, which will become even more valuable as the demand for alternative energy sources increases.
In addition to the demand for palladium in industrial sectors, it’s used in a diverse variety of areas like dentistry, medicine, jewellery, and many forms of water and chemical purification. Analysts have been predicting that palladium would surpass gold in value sometime in 2019 and many are going even further in saying the price of palladium will explode by 2020. We’ve collected some of our favourite analysts who predict palladium will be bullish in the coming year.
Taki Tsaklanos
Twitter
Investing Haven did an exhaustive analysis of the potential for palladium in October of 2018 and has updated their prediction every month of 2019. The founding author of Investing Haven is Taki Tasklanos who has over fifteen years of experience in global markets. Tsaklanos uses price patterns and inter-market dynamics, combined with news and sentiment analysis, to generate effective price predictions in many markets.
Tasklanos and his team at Investing Haven believe 2019 will be a huge year for palladium and that the price of palladium will continue to go up into 2020. Investing Haven notes that demand for palladium continues to exceed supply year after year. “With a supply deficit which is building up for 5 years, with a massive physical palladium exodus from ETFs which is reaching its limits, in a gold-friendly environment, we see several primary and secondary indicators suggesting at much higher palladium prices to come in 2019.”
Robert Kientz
Website
Robert Kientz over at Seeking Alpha published an article on Feb 25, 2019, giving three compelling reasons why palladium market is getting stronger and stronger: strong demand for catalytic converters, growing consumer demand in jewellery over other bonded materials, and new research focused on applying palladium to medical technologies.
Kientz has worked in precious metal analysis for over 10 years and has relationships with miners and geologists as well as analysts. He has experience in market analysis and wrote a book called ‘Dropshadow: The Truth About the Economy” after doing research on Austrian economists in the wake of the 2008 recession, which he calls “a calamity.”
He runs a personal newsletter service for investors at www.goldsilverpros.com
Neils Christensen
Twitter
Neils Christensen over at Kitco brings us an interesting piece also from late February 2019, “It’s A Good Time To Be A Palladium Miner.”
In a phone interview, Christensen spoke with Jim Gallagher, president and CEO of North American Palladium (TSX: PDL), who says that new emissions regulations in Europe and China will lead to even higher demand for palladium from the auto industry. At the time of writing, Christensen notes that palladium was trading for $1,502 an ounce.
Christensen is a journalism graduate from Lethbridge College and has reported on territorial and federal politics in Nunavut, though he has been reporting on the financial sector since 2007. He is an editor at Kitco.com, which provides “spot prices, expert market commentaries, up-to-the-minute news and usable market information,” they claim their website attracts nearly a million visits every day.
John Dizard
Financial Times
Financial Times regular John Dizard has written two articles about palladium in the past few months: one in late September saying it was time to short palladium due to fears of a bubble in the auto industry, and one in late February that doesn’t exactly walk back his cynicism, but certainly has a rosier outlook for palladium going into the next year.
Dizard has been a financial journalist for over 30 years and has a regular column in FT, Street Talk, every Friday which covers pretty much every imaginable topic, from renewable energy to economics in Iraq. His impressive bio on speakerpedia.com says he “also writes for The New York Post, The New York Observer, National Review, Fortune Magazine, Institutional Investor, Fortune, Forbes, Barrons, and the New York Journal of Commerce.”
Micheal M. Thomas, the owner of The Midas Watch, said of Dizard: “He gets the perverse Newtonian system our political economy has degenerated into, in which every action appears to produce not an equal and opposite reaction, but an excessive and opposite reaction.”
Safe to say, Dizard’s opinion on anything is worth paying attention to, and his apparent mea culpa on palladium definitely fits the bill.
Myra P. Saefong
Twitter
Myra P. Saefong is a 20 year veteran of MarketWatch.com. Her bio says she focuses on writing “the daily Futures Movers and Metals Stocks columns and has been writing the weekly Commodities Corner column since 2005.”
In early Jan 2019, Saefong said palladium was “on a tear” and was “narrowing their price spread with gold to the smallest in roughly 16 years.” Saefong quotes John Ciampaglia, CEO of Sprott Asset Management, saying “Palladium is close to becoming the most ‘precious’ of precious metals.”
Saefong has 9,500 followers on Twitter and is an active user on the social media platform, where she keeps her followers up to date on her own writing, that of the rest of the MarketWatch team, and provides a steady stream of reports & breaking news on futures.
Get Into Palladium Now!
If you trust these experts as much as we do, there is no better time to get into palladium. (Except, perhaps, ten years ago!) With the demand for palladium in catalytic converters, jewellery, and medical research, the price of palladium will only grow in the next year. It will be especially important to have invetsed when the price of palladium surpasses gold, which many of these analysts say will occur in the coming months. Established companies like 21C Metals, which has just acquired the palladium-rich, 992 hectare East Bull property in Ontario, Canada, are well poised to take advantage of the continuing rise of the price of palladium.
(Note: In this article we mention 21C Metals (CSE: BULL). 21C Metals is a client of TrendScan and members of the TrendScan team own options to stock in 21C Metals.)