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Palladium is widely used in catalytic converters which are used in motor vehicles to reduce emissions. A steep drop in price may signal slowing vehicle sales. If you own a precious metals fund it may have suffered recently from the dramatic price action in palladium. However, the metal had roughly doubled in price since last August (from $800-$900 to over $1600 recently).
TD Securities pointed out that Chinese car sales are undergoing their most prolonged contraction on record. ... ‘Ultimately, we think prices will have to acknowledge that vehicle sales are some 15% lower and vehicle production is down some 17.4% as of February's data — despite signs of incentives in rural areas, which suggests market saturation.’ “ https://www.kitco.com/news/2019-03-28/Analysts-Palladium-Prices-Tumble-From-Bubble-Territory.html
From The Street - “Palladium’s Spectacular Rally Isn’t Over“Yet “The big rally in palladium prices still has room to run. Double-digit returns are likely in store over the next few months“ (Appears to have been written at the peak of the bubble) https://www.thestreet.com/investing/palladium-prices-still-have-upside-14904136
Comments
Regards,
Ted
Regards,
Ted
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